No Taxation with the Right Representation

A valued client facing a 1031 exchange deadline recently turned to Progress Capital. By quickly identifying the right exchange based on ROI, narrowing down the selection by sourcing financing options to maximize cash flow, a $4.7 Million loan was provided to successfully satisfy the client’s 1031 exchange deadline.

·         Loan Amount: $4,702,500

·         Terms: 10 Years

·         Initial Fixed Rate Period: 7 Years at 3.77%

·         Reset Rate: 1 at 3 Year LIBOR + 1.90% with 3.7% floor

·         Amortization: 25 Years

Having the right team in place can be the difference between qualifying for an exchange or having to pay a huge capital gains tax.

Completing a 1031 exchange can be challenging. The tax-deferment program is notoriously difficult because of the limited time restrictions. A like-kind exchange under the IRC Code Section 1031 requires you to identify replacement properties 45 days from the date you sell the relinquished property. The second time limit constraint is that the replacement property must be purchased and the exchange completed no later than 180 days after the sale or the due date (with extensions) of the income tax return for the tax year in which the relinquished property was sold, whichever is earlier.

Progress Capital is a commercial real estate advisory company serving clients since 1990. With over $40 Billion in closed loans and $150 Million of directly funded bridge loans, we will get you to the closing table… Plain and Simple. #thatsProgress