Steps to Initiate an Exchange with IES

A 1031 Exchange must be set up prior to the closing on the Relinquished Property. Once the Exchange Proceeds from the sale of the Relinquished Property are received by the Investor, the sale will be subject to tax. The Exchange Proceeds must be transferred directly to IES in order to protect the integrity of the exchange.
  1. We strongly recommend that you first discuss a 1031 exchange with your tax and/or legal advisors in order to determine the tax liability resulting from the sale of your Relinquished Property and planned purchase of Replacement Property.  This will help to insure that a 1031 exchange will result in actual tax savings.
  2. Make sure to include language establishing the intent to perform a 1031 exchange in the purchase and sale agreements for both the Relinquished Property and the Replacement Property.  The following are examples of language that may be utilized.SALE OF RELINQUISHED PROPERTY
    1031 Exchange.  If requested to do so by Seller, Buyer shall cooperate in a simultaneous or deferred exchange in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, by permitting Seller to assign this Agreement to a third party exchange intermediary .  The assignment may only take place simultaneously with the closing under this Agreement, and in no event shall Seller be relieved of any liability under this Agreement by reason of the assignment.  Buyer shall not be required to bear any escrow, title, or other expenses in excess of those Buyer would bear if there were no exchange.PURCHASE OF REPLACEMENT PROPERTY
    1031 Exchange.  If requested to do so by Buyer, Seller shall cooperate in a simultaneous or deferred exchange in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, by permitting Buyer to assign this Contract to a third party exchange intermediary .  The assignment may only take place simultaneously with the closing under this Contract, and in no event shall Buyer be relieved of any liability under this Contract by reason of the assignment.  Seller shall not be required to bear any escrow, title, or other expenses in excess of those Seller would bear if there were no exchange.
  3. Contact us at (719) 632-1222 or toll-free at (866) 269-1031 with any questions regarding the exchange process. All initial phone consultations are free and at no charge.
  4. Fax or e-mail a copy of the sales contract for the Relinquished Property and a copy of the title commitment or preliminary title report issued by the title or escrow company handling the closing. Our contact information is:
    Fax Numbers: (719) 632-0974
    (719) 632-0554
    E-mails: Michael C. Cook, Esq.
    President    		 mike@mcooklaw.com
  5. Upon receipt, our office will prepare the Exchange Agreement and exchange closing instructions and send these items to the title company, escrow agent, or attorney handling the closing of the Relinquished Property. These documents will be signed at closing.
  6. IES will receive the Exchange Proceeds from the Relinquished Property closing. Upon receipt, IES will send a follow up letter confirming receipt of funds and advising you of your 45-day identification and 180-day closing deadlines. IES will also provide you identification forms to utilize when identifying yourReplacement Properties.
  7. Once you have identified and contracted for the purchase of the Replacement Property, you should fax or e-mail a copy of the purchase contract for the Replacement Property and a copy of the title commitment or preliminary title report issued by the title or escrow company handling the closing.
  8. Upon receipt, our office will prepare the exchange documentation required in connection with the purchase of the Replacement Property and arrange to wire the Exchange Proceeds directly to the title company, escrow agent, or attorney handling the closing of the Replacement Property.
  9. Once all identified Replacement Properties have been acquired, you will receive a closing binder containing all your 1031 exchange documents. These documents will assist you or your tax advisor in completing the tax filings necessary to report the exchange.