About Legal 1031
The main focus at Legal 1031 Exchange Services, LLC is customer service. IRC 1031 exchanges can sometimes be complicated but more so when clients are working on their first §1031 transaction. Our goal at Legal 1031 is to take the uncertainty out of the transaction and make our clients feel comfortable.
Many qualified intermediaries try to have you fill out forms over the internet and limit your conversations. Legal 1031 takes the opposite approach – we encourage our clients to contact us so that they feel confident and comfortable as they work through their transaction.
1031 Extension Calculator Due to Covid-19
The IRS recently issued Notice 2020-23 which provides an extension for some 1031 exchange taxpayers due to the Covid-19 pandemic. Unfortunately, due to some unclear language used in the Notice, there is a debate as to the number of extra days a taxpayer might receive.
“What our clients say about us”
“I had a wonderful experience working with Legal 1031. Although I’ve done numerous real estate transactions, I appreciate the expertise and experience they have which is necessary for a smooth and successful 1031 Exchange. Each person that I communicated with at Legal 1031 was very knowledgeable and extraordinarily helpful.”
Susan F. Cappiello, Esq.
Santa Barbara, CA
“Legal 1031’s services were thorough and very professional. Their response time on any questions/issues was fast and their instructions were clear. I was very impressed overall with their services and I would not hesitate to use them again and have already recommended them to others.”
“Over the years I have done many 1031 exchanges through Legal 1031. I have found them to be efficient, timely and knowledgeable about tax and legal questions relating to section 1031 exchanges. I highly recommend them to anyone contemplating a 1031 exchange.”
“Legal 1031 helped us on 3 different 1031 transactions over the last 2 years. They were a pleasure to work with and the process was very easy to follow. We could always reach someone by phone and email. Will use them again for our next real estate exchange.”
We have used Todd and his team for over 20 years in connection with our exchanges. There is no one more knowledgable or practical in the 1031 space.
Legal 1031 Exchange Services has handled our tax-free exchanges for almost 20 Years! Each transaction was processed professionally and flawlessly. Would highly recommend this company without reservation.
Todd’s encyclopedic knowledge of the intricacies of 1031 exchanges helps his firm execute potentially difficult transactions with flawless efficiency. I’ve never been disappointed in 10 years.
The NNN Pro Group has been working with the principals of Legal 1031 for over twenty years. Their knowledge, security, and customer service make them the best in the industry.
We cannot say enough about the Legal 1031 team. They are a perfect “10” when it comes to doing your 1031.
An IRC §1031 tax deferred exchange allows owners of real or personal property to defer the recognition of a capital gains tax they would have recognized when they sold their property. Exchanging allows investors to reinvest money into new business or investment properties that would otherwise have been paid to the government as a capital gains tax. Tax deferred exchanges are not new – they have been available in one form or another since 1921, and in its current format since 1986.
Legal 1031 Exchange Services, LLC is a Qualified Intermediary. A Qualified Intermediary is an independent third party to the transaction whose function is to prepare the documents necessary to create the exchange, as well as to act as the independent escrow agent for the exchange funds. The Qualified Intermediary is defined by the Treasury Regulations and may not give tax or legal advice.
One of the most misunderstood concepts of tax deferred exchanges is the concept of like kind. Many people wrongly believe that like kind means the same type of property must be purchased when completing an exchange. Nothing can be further from the truth. Exchangers can sell one type of property and buy a completely different type of property as is explained below.
The Exchanger has 45 days from the date of the sale of the relinquished property to identify the potential replacement properties. The identification is a written letter or form which is signed and dated by the taxpayer, and contains an unambiguous description of the property. A property which is identified is not required to be under contract or in escrow to qualify. Exchangers acquiring an undivided percentage interest (“fractional interest") in a property should identify the specific percentage that will be acquired.
An exchange is basically a sale just like any other sale and a purchase just like any other purchase, however, you must work with a qualified intermediary before you start your exchange.
When choosing a Qualified Intermediary it is important to look for the following items:
1. What is the experience of the person who you are speaking with? How long have they been in the industry? How often do they lecture on IRC Â§1031 tax deferred exchanges? Are they a published author, and were the articles published in a major legal publication such as a law journal? Are they a tax or legal professional such as an attorney or CPA? Remember, the person on the other end of the phone may be from a big company but may only have a few months experience. It is important to ask!
Contact us to Start an Exchange
If you would like to be contacted by one of our Exchange experts, please fill out the contact form and we will get back to you as soon as possible. You can also contact us directly by calling our office at
877-701-1031 x 508.