Seamless In-House Coordination
Our team helps coordinate the 1031 exchange process from start to finish, reducing administrative friction, simplifying communication, and creating a more efficient experience for clients and their advisors.
1031 Exchange
FC 1031 Exchange Program
Maximize the benefits of a properly structured 1031 exchange with the support of Exchange Manager Pro, an advanced 1031 exchange workflow platform, combined with the expertise and exchange facilitation services of a leading Qualified Intermediary.
A 1031 exchange is a provision of the U.S. tax code that can allow an investor who sells certain investment or business real estate to defer recognizing capital gain if the proceeds are reinvested in qualifying replacement real estate.
Multiple requirements must be satisfied for a valid exchange.
Our clients gain streamlined access to experienced 1031 exchange professionals without the time and effort of searching for and coordinating with an intermediary on their own. From transaction initiation through completion, our process is designed to make the 1031 exchange experience more efficient, organized, and convenient.
Qualified Intermediary
What is the Role of a Qualified Intermediary?
A Qualified Intermediary (QI) is the third party that facilitates a 1031 exchange so that you can defer the tax on the sale of qualifying investment real estate.
What the QI actually does
Think of the QI as the middleman who holds and moves the money between your old property and your replacement property.
For example:
- You sell Property A for $800,000.
- Instead of the $800,000 sale proceeds going directly to you, the proceeds go to the Qualified Intermediary.
- You identify the replacement property within the required 45-day identification period.
- You purchase Property B.
- The QI transfers the exchange funds toward the purchase of Property B.
- Assuming all the 1031 requirements are satisfied, you generally defer recognition of the gain.
This is one of the most important parts.
For a typical deferred 1031 exchange, you generally cannot receive or control the sale proceeds yourself. If you receive the money, you can jeopardize the exchange and potentially trigger taxable gain.
The QI establishes the exchange structure and holds the funds pursuant to the exchange agreement.
Advanced 1031 Exchange Technology
Our patented Exchange Manager Pro℠ workflow technology provides clients and their advisors with greater visibility throughout the exchange. Track important transaction milestones, exchange timelines, funds, and other pertinent information through a streamlined digital workflow.
Experienced 1031 Exchange Professionals
FC 1031 Exchange provides access to experienced professionals, including attorneys with subject-matter expertise and seasoned Certified Exchange Specialists® (CES®), to help facilitate the exchange process and navigate its requirements.
Enhanced Protection for Exchange Funds*
Clients can have added confidence knowing their exchange funds are supported by substantial insurance coverage. Our coverage includes:
- $50 million Fidelity Bond
- $25 million Errors & Omissions coverage
- $20 million Cyber Liability coverage
These levels of coverage provide an additional layer of protection and reflect the financial safeguards maintained by FC 1031 Exchange.
How to get started?
We are here to assist you in coordinating your 1031 Exchange and connect you with the proper support needed for your transaction.
Please contact info@fcsettle.com or give us a call at 631-393-2650 and ask someone on our team to get you started.
*1031 exchange services are provided by a qualified intermediary that is wholly owned subsidiary of Accruit LLC, an Inspira Financial solution. The provider of these materials is not an agent or employee of, nor otherwise affiliated with, the qualified intermediary. The above coverages and processes are available through Accruit, LLC acting as the qualified intermediary.