SECTION 1031 FORWARD EXCHANGES

A Section 1031 tax-deferred exchange is the logical choice for investors who want to trade one qualifying asset for another - in order to defer federal capital gains taxes. Alliant National Exchange can help you with most any kind of Section 1031 Tax-Deferred Exchange.

The Forward Exchange Process
In order to initiate an exchange, a property owner must appoint a qualified intermediary, such as Alliant National Exchange. We will prepare and manage the documents for the exchange, including the following:

• Exchange Agreement Outlines the rights and obligations of the parties involved in the exchange.
• Assignment of Rights and Notification - Relinquished Property Contract Assigns property owner's interest in contract, which entitles the intermediary to receive and hold the net proceeds pending sale.
• Notice, Waiver and Release Specifies the time deadlines and client obligations during the exchange process.
• W-9 Form Allows the intermediary to invest the sales proceeds in an account on behalf of the client.
• Identification of Replacement Property Identifies the replacement asset to be purchased (completed by you, the client).

Step 1.
Once these documents have been completed, Alliant National Exchange will notify the title company handling the closing of the sale and they will close the transaction in the usual fashion. All legal documents, including the Warranty Deed, will be completed by the property owner, and given to the buyer (called "direct deeding").

Step 2.
When the transaction closes and Alliant National Exchange receives the net proceeds, we invest them in an interest bearing account on our client's behalf. The client will then receive ALL interest that accrues on the account during the pending exchange.

Step 3.
After closing, the client has 45 days to identify a replacement property/asset he or she wishes to purchase. At this time, the client will execute the Identification of Replacement Property paperwork. The client has 180 days from the date of the sale of the first property to complete the purchase of the replacement property.

Step 4.
At the time of closing of the replacement property, Alliant National Exchange will turn all held funds over to the title company to be applied toward the purchase price.

We also provide a user-friendly transaction management tool via our Website called SecureXchange. This protected service allows you make comments, ask questions and view recent activity on your transaction 24/7 - at your convenience. You'll be automatically updated by email or fax when new events occur or when new documents are posted making it easy for you to stay up to date. You and your title agent will find this service invaluable as it serves to streamline and simplify a complex process. It's our goal to keep you informed every step of the way.

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