Gilbert F. Dukes, III (“Gil”), a tax lawyer in Mobile, Alabama, serves as President of Alabama 1031 Property Exchange, Inc. (“Alabama 1031″). For the past 25 years, Gil and Alabama 1031 have been helping individuals and businesses successfully complete tax deferred exchanges of property under section 1031 of the Internal Revenue Code. In a typical “deferred” exchange, investment property is sold and the net sales proceeds are escrowed with Alabama 1031 as the seller’s “qualified intermediary.” The seller then (i) “identifies” replacement property within 45 days after the sale and (ii) acquires replacement property within 180 days after the sale. By successfully completing a 1031 exchange of investment property, the seller may avoid paying income taxes which would otherwise have resulted from the sale.
Other types of exchanges include “reverse exchanges” and “improvement exchanges.” If properly structured as a “reverse exchange,” replacement property may be acquired in advance of a sale, with Alabama 1031 temporarily taking title to the replacement property as the seller’s “titleholder.” If properly structured as an “improvement exchange,” improvements may be made to replacement property as part of a 1031 exchange.
For any type of 1031 exchange, appropriate documents need to be drafted and executed by Alabama 1031 and its customer in advance of a sale or purchase. For more information regarding 1031 exchanges of investment property, see the attached article .