1031 Exchange Services

Patterson Osborn Exchange Services facilitates the disposition and replacement of investment and business-use real estate through tax-deferred exchanges for like-kind properties in accordance with a U.S. Treasury Regulation commonly called a “1031 exchange.”

We collaborate with our clients’ accountants, attorneys and real estate representatives to accomplish successful property exchanges. We have facilitated exchanges throughout the USA and completed transactions from $50,000 to $50 million.

Contacts:

John H. Osborn, 302.622.3521 or osborn@osbornrealtyservices.com

Duncan Patterson, CCIM 302.622.3511 or patterson@pattersonwoods.com

Facilitation of 1031 Exchanges

The sale of a business or investment asset, whether real estate or capital equipment, can create a large tax liability. A properly structured tax deferred exchange under Internal Revenue Code §1031 allows businesses and individuals to defer the recognition of the capital gains associated with the sale of most business or investment assets, as long as new assets are purchased to replace the existing assets. For most taxpayers, tax deferred exchanges are structured as real property (real estate) exchanges.

To be eligible for the favorable tax treatment afforded by an exchange, the property or business asset to be disposed of must have been held by the client for productive use in a trade or business, or for investment purposes, and be exchanged for like-kind replacement property that will be held by the client for similar purposes. With few restrictions, whether involving a parcel of land, a duplex, an apartment building or a shopping center, exchanges allow businesses and individuals the flexibility to sell property to whomever they wish, and to buy new property from whomever they wish. Exchange transactions do not require any significant changes to the terms of the sale and purchase agreements. By utilizing an exchange, clients are able to maximize their capital by deferring the taxes that would otherwise be incurred on an outright sale of their property and to use the entire amount of equity from the exchange to acquire substantially more replacement property. Properly structured and administered, an exchange becomes an invaluable tax saving tool and an integral element of the business cycle.

When you are selecting a Qualified Intermediary to assist you in your next tax deferred exchange, whether it is the exchange of a single real property asset or for your ongoing multiple asset exchange program, select the Qualified Intermediary with the highest level of security, expertise and service in the industry for a successful exchange.

The experts at Patterson Osborn Exchange Services have more than twenty-five years of experience in 1031 tax-deferred exchanges and facilitate them most anywhere in the USA.