Ensure a smooth property exchange by working with a trusted 1031 exchange qualified intermediary to handle timelines and documentation.
When it comes to commercial real estate investing in the United States, one of the most powerful tools at your disposal is the 1031 Exchange Qualified Intermediary. Navigating the complex rules of a 1031 exchange requires an experienced intermediary to ensure IRS compliance and maximize your tax-deferral benefits.
At Clopton Capital, we simplify and streamline the 1031 Exchange Qualified Intermediary. process, helping investors preserve wealth and reinvest efficiently in U.S. commercial real estate.
Selling a commercial property typically triggers capital gains taxes on the profit from the sale. These taxes can significantly reduce the capital available for reinvestment. A 1031 Exchange Qualified Intermediary allows you to defer these taxes by reinvesting the proceeds into another qualifying U.S. property, giving you more resources to grow your portfolio.
Key Benefits of 1031 Exchanges:
Maximize Investment Potential: Reinvest capital gains without immediate taxation.
Diversify Your Portfolio: Transition between property types to reduce risk.
Preserve Wealth: Keep more cash available for income-generating properties.
Estate Planning: Pass on a larger tax-deferred portfolio to heirs.
Note: 1031 exchanges are U.S. IRS provisions only. They are not available for properties outside the United States.
A Qualified Intermediary (QI) is a neutral third party who facilitates a 1031 exchange. The QI holds the sale proceeds of your relinquished property in a secure account, preventing the funds from triggering capital gains taxes.
Structuring the Exchange: Ensure your transaction meets IRS rules and maximizes tax benefits.
Documentation: Prepare the Exchange Agreement, Assignment of Rights, and other required forms.
Replacement Property Identification: Guide you through the 45-day identification period.
Funds Management: Ensure safe transfer of funds during the exchange.
Closing & Reporting: Handle the replacement property closing and IRS reporting.
Here’s a step-by-step overview of how a typical 1031 exchange works with Clopton Capital:
Step 1 – Initial Consultation
Discuss your investment goals and identify properties for potential exchange.
Determine if the transaction qualifies under IRS 1031 rules.
Step 2 – Engage QI
Clopton Capital becomes your Qualified Intermediary, holding proceeds in a segregated account.
Step 3 – Sell Your Relinquished Property
Proceeds from the sale are transferred to the QI, not directly to you, to maintain tax-deferred status.
Step 4 – Identify Replacement Property (45 Days)
Identify one or more replacement properties within the IRS-mandated 45-day window.
Step 5 – Acquire Replacement Property (180 Days)
Complete the purchase of your replacement property within 180 days from the sale of the relinquished property.
Step 6 – Closing & IRS Reporting
QI ensures funds are transferred properly.
File necessary IRS forms to document the exchange.
Tip: Timely execution is critical. Missing deadlines may disqualify the exchange.
We believe in transparency, and our fee structure reflects that. You’ll know exactly what to expect, with no hidden fees or surprises.
Experience & Expertise
Extensive experience with commercial real estate and 1031 exchanges.
Successfully handled numerous exchanges, saving investors significant capital gains taxes.
Personalized Service
Tailored guidance for each client, from first-time investors to seasoned professionals.
Compliance & Security
Full IRS compliance and funds held in secure, segregated accounts.
Efficient Execution
Fast, reliable handling of deadlines, documentation, and fund transfers.
Transparent Fees
No hidden costs; you know exactly what to expect upfront.
IRS-Compliant: All exchanges are structured to meet U.S. tax laws.
Insurance Protection: Comprehensive liability coverage for peace of mind.
Industry Experience: Office buildings, retail, industrial properties, and more.
Proven Track Record: Successful 1031 exchanges across multiple commercial property types.
Safely defer capital gains taxes and streamline your U.S. commercial real estate investments with expert guidance. Contact us at 866-647-1650.
No. 1031 exchanges are limited to U.S.-based properties under IRS rules.
You have 45 days to identify and 180 days to close on the replacement property from the sale date of your relinquished property.
Any investment or business-use property in the U.S., including office buildings, retail centers, industrial facilities, and multifamily housing.
To defer all capital gains taxes, yes. Partial reinvestment may result in a taxable gain on the non-reinvested portion.
No. 1031 exchanges are strictly for investment or business-use properties.
