ABOUT US
Castling Exchange is a Qualified Intermediary, also known as an exchange accommodator, performing tax deferred exchanges throughout the country, from basic deferred exchanges to highly sophisticated transactions. Castling Exchange processes transactions throughout the United States by way of fax or email, or if you prefer, in person at our offices in Beverly Hills, California.
The Managers of Castling Exchange are Paul Sigelman and Deborah Perlman, who together have over 40 years experience as licensed real estate attorneys and managers of trust funds, and began working together in 1995. Unlike many institutional exchange accommodators, at Castling Exchange your exchange will be personally overseen by its Managers, to insure that you are comfortable with the transaction, and that your questions are answered to your satisfaction. Castling Exchange has the expertise and commitment to client satisfaction to ensure that your 1031 exchange is executed safely, precisely, and timely.
Complimentary exchange consulting services are provided, in person, by phone or by email, and may be arranged as conference calls with your own tax and legal advisors.
Castling Exchange is fully insured and can arrange for issuance of standby letters of credit upon request.
1031 EXCHANGES
What is an IRC 1031 Exchange?
Section 1031 of the Internal Revenue Code provides potentially enormous tax benefit for people selling real or personal property upon which tax would be due, by permitting indefinite deferment of payment of that tax, provided that certain rules are complied with. For a transaction to qualify as an exchange under section 1031, and its tax deferment benefits, the services of a qualified intermediary such as Castling Exchange must be used.
When you sell real property held for investment (such as vacant land), or held for business use (such as for rental), you may defer payment of tax otherwise realized on the sale of that property, such as capital gains tax, income tax, and recaptured depreciation, provided you replace it with other qualifying property within 180 days of sale, and other rules followed. Generally speaking, section 1031 enables you to exchange the property sold for replacement property of like-kind, meaning of similar nature or character. For example, vacant land purchased for investment may be exchanged for an apartment building, but would not qualify as a 1031 tax deferred exchange if exchanged for an airplane.
This is the most common type of 1031 exchange. It is also possible to purchase replacement property before selling your property (‘reverse exchange"), to purchase or sell property on an installment contract, or to exchange personal property and still defer tax.
You may not take actual or constructive receipt of the money from the sale or the exchange will fail, and the transaction will be taxable. Monies in escrow available to you for your use or at your direction, such as after close of escrow, are constructively received. Therefore, you must bring in the services of a Qualified Intermediary prior to closing escrow on the sale property..
Who Benefits From 1031 Exchanges?
Anyone who may realize a profit from the sale of their property may benefit from a 1031 exchange.
What You Need To Do:
Initiate the exchange process by filling out the information on the "Open the Exchange" page, or by contacting Castling Exchange before you close escrow on the property you are selling, allowing sufficient time for the documentation to be completed. Once we receive the information needed, Castling Exchange will provide you with an exchange contract, which we will forward to your closing agent along with instructions for the agent to follow for the transaction to be compliant with the Internal Revenue Code 1031 regulations.
OUR FEES
Option One: You do not receive interest on your funds awaiting reinvestment. No cancellation fee if you don't find a replacement property. $495.
Option Two: You receive interest on your funds awaiting reinvestment. No cancellation fee if you don't find a replacement property. $795.
Fees for reverse exchanges, installment sale exchanges, personal property exchanges, and standby letters of credit available upon request.
CONTACT US
Castling Exchange, LLC
433 N. Camden Drive
Suite 970
Beverly Hills, CA 90210
telephone: (310) 550-0054
toll free: (877) 721-1031
fax: (310) 859-0097
email: info@castlingexchange.com