Answering Common Questions About 1031 Exchanges in Pennsylvania

If you're a real estate investor in Pennsylvania, chances are you've heard of a 1031 exchange. But what does it actually involve? And what role does a company like Buchanan 1031 Exchange, LLC play in the process?

Many clients come to us with great questions about 1031 exchanges, so we wanted to share answers to the most common ones we hear during real estate transactions. In supporting 1031 exchanges, we’ve worked with many investors to ensure successful, legal, and timely exchanges.

What Is a 1031 Exchange?

A 1031 exchange is a tax deferral tool available to real estate investors under IRC Section 1031 of the U.S. tax code. When you sell a property and reinvest the proceeds into another qualifying property, you can defer the capital gains taxes that would otherwise apply.

However, there are strict requirements:

• The properties must be used for business, trade, or investment purposes.

• The replacement property must be of equal or greater value.

• The replacement property must be identified within 45 days.

• The exchange must be completed within 180 days.

These rules make timing and coordination critical.

How Buchanan 1031 Exchange, LLC Supports 1031 Exchanges

• In-House Coordination We work closely with our team to coordinate your 1031 exchange. This reduces friction and increases the timeliness and efficiency of the 1031 exchange.

• Software Workflow Using Exchange Manager ProSM, our patented 1031 software, we keep our clients and advisors informed during the transaction. This means that you will always know upcoming deadlines, available funds, and the status of your exchange.

• 1031 Exchange Expertise We provided access to experienced attorneys and Certified Exchange Specialists® (CES®) who understand the ins and outs of 1031 exchanges. Our company has extensive practical experience which allows our team to handle your exchange process from beginning to end with complete accuracy.

• Security of Funds Buchanan 1031 Exchange, LLC dedicates its highest priority to protecting your exchange funds. Our company provides top-tier protection through Fidelity Bond coverage of $50 million and Errors & Omissions insurance of $25 million and Cyber Liability insurance of $20 million which ensures your complete peace of mind.

Answering Questions for Investors

If you’re considering a 1031 exchange, don’t wait until the last minute. Reach out early so we can help ensure everything is set up properly from the start. Our team at Buchanan 1031 Exchange, LLC helps investors protect their investments and defer taxes legally.

We are happy to answer your questions and strive to make your 1031 exchange as smooth as possible.

Ready to Learn More?

You can reach us at (717) 762-1415 or contact our Waynesboro or Chambersburg office to discuss your upcoming investment plans.

Trust the team that knows 1031 exchanges in Pennsylvania.