Flawless Section 1031 Exchanges For Over 27 Years

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CASE STUDY 1
ABDC Delayed Exchange
(Existing Property)
Direct Format

In this format, the Client (A) gets a Section 1031
Exchange between steps 3 and 7 assuming all of the rules have been followed. This is the most common type of exchange.
 

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> Case Study 2 (Reverse Format - Exchange Last)

This diagram is for illustrative purposes, some essential steps are not shown.

 The Exchange Agreement with Edmund & Wheeler, Inc. which governs the overall transaction.  This document MUST be in force before the closing.

 The Purchase and Sale Agreement to sell the Relinquished Property.  This step may take place before Step 1 (the only out-of-sequence exception).The closing of the Relinquished Property; if several are involved, the first in chronological order.  In this step, the deed to the property is given to the Buyer.

The closing of the Relinquished Property; if several are involved, the first in chronological order.  In this step, the deed to the property is given to the Buyer.

Rather than going to the Exchangor, the Buyer's funds are used to pay all of Exchangor's expenses (including mortgages, if any), with the NET going directly to a money center bank into a separate, interest-bearing account established in the Exchangor's name and Social Security number.

This is an interactive step encompassing all communications post-closing with the Exchangor and Edmund & Wheeler, Inc.  Included are the 45-day Identification Letter, instructions on how much of the account to be expended on particular properties, and final approval to close on the final choice(s).

These are the precise instructions to Exchangor's attorney, bank or Title Company for the closing of the Replacement Property, and the wire transfer of approved funding.

This is the Exchangor's receipt of the direct deed from the owner of the Replacement Property (C); the Exchangor achieves a Section 1031 Exchange between Steps 3 and 7, where in Step 3 a deed is given and in Step 7 a deed is received, and in between the Exchangor had no control (or Constructive Receipt) of funds.

 

 

 

Edmund & Wheeler, Inc. QI
567 Cottage Street
Littleton, NH 03561
603.444.0020
603.444.6611 Fax
exchange@section1031.com

Edmund and Wheeler is actively involved
in the exchange community.
Edmund & Wheeler, Inc. headquartered in Littleton, New Hampshire (NH)  is a Section 1031 Qualified Intermediary with over 27 years of experience. Edmund & Wheeler has completed  thousands of successful exchanges in 47 states. George E. Foss III and Christine S. Latulip are the firm's principals bringing with them decades of experience in finance, tax issues, banking, real estate and most importantly are proven experts in all things Section 1031. This site contains real-life examples of successful exchanges, industry insight, detailed case studies of exchanges, Section 1031 news and other related materials. Case study of the most typical Section 1031 Exchange.

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The information contained on this site is for informational purposes only and does not constitute tax, legal or accounting advice.