|
|
|
|
Flawless Section 1031 Exchanges For Over 27 Years |
|
|
|
|
 |
|
|
REAL-LIFE EXAMPLES OF OUR EXCHANGES |
|
 This is a classic
"build-to-suit" transaction. Our client sold a commercial property and
directed the proceeds of the sale by virtue of an Exchange Agreement to us
as Qualified Intermediary. We created a single purpose entity to conduct the
business, in this case a NH corporation. We then purchased, in the name of
the new corporation, a piece of raw land (which had been subdivided and
permitted) using the exchange proceeds.
The client delivered specific instructions for the type of building to be constructed on the site and directed who the contractor would be to perform the work. We made a series of progress payments based on the work in place and the "ok" to pay by the client. Once all of the sale proceeds of the Relinquished Property were exhausted, the new property was deeded to the client and the corporation was closed and tax return filed on its behalf. The entire process was concluded within 180 days. [List of examples] |
|
|
EXCHANGE FOR AN IMPROVED BUSINESS SITE WHILE REMAINING IN BUSINESS |
|
 This Case has been
utilized by Clients who are in active businesses, and wish to remain in
their old facility until a new one has been created and is ready for
occupancy. Typically, they wish to move in over a weekend, and then close
on the sale of the old property.
One Client to utilize this Case was a cleaning
company. A buyer wanted the old facility as a tear-down, and the Client
wanted the proceeds handled as a Section 1031 Exchange. The Client had a
site picked out, which needed a brand new, state of the art, cleaning
facility erected on the vacant lot.
A corporation (Special Purpose Entity (SPE),
a/k/a Exchange Accommodation Titleholder (EAT)) was formed to own the land
and construct the building, using the proceeds of a line of credit secured
on the old facility and the new lot. All construction payments were made by
the SPE after the Client had specifically approved each application.
Construction took about one year. When complete, the Client moved into the
new facility on a short lease from the SPE, and completely vacated the old
plant.
Immediately, a closing on the old site was
held, and the purchase funds were delivered to Edmund & Wheeler, Inc., who
in turn directed the SPE to deed the new plant to the Client, and in so
doing, pay down as much of the line of credit as there were funds available.
The net effect of the transaction is to take
the purchaser's funds from the sale of the Relinquished Property and, via
the mechanism of a Qualified Intermediary, use these funds to pay the
construction debts of an SPE formed to construct brand new Replacement
Property. The Client gets a new facility and full tax deferral.
[List of examples] |
|
 This
is an interesting reverse exchange case study. Our client had a unique
opportunity to acquire lake-front land that abutted his personal residence. The
new property will be held for investment but clearly enhances his existing
property. Because the equity needed to close was tied up in an existing
ocean-front rental condo in Florida, the mechanism of a reverse exchange was
utilized.
We created a legal entity to acquire the existing beach-front condo using loan funds the client provided. The funds came to us as the Qualified Intermediary, and the client went ahead and acquired the lake-front land. The low basis in the beach property shifted once it was sold to our entity and now this basis resides in the lake property. In these types of exchanges the client has 180 days to sell the existing property (now titled to the new legal entity). |
|
|
[List of Examples] |
|
|
Edmund
&
Wheeler, Inc.
QI |
|
|
Edmund and Wheeler is actively involved |
|
| 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. | |
|
Copyright 1995-2008.
Edmund & Wheeler, Inc. all rights
reserved. |
|
