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HERE'S HOW IT WORKS

1

Choose Qualified Intermediay (QI)

Commonwealth1031.com LLC would like to serve as your Qualified Intermediary. We are experts in the field of 1031 Exchanges and will handle the process from start to completion facilitaing the exchange. We will ensure a smooth and efficient process with peronalized service guiding you every step of the way helping you maximize your investment strategy.

2

Sell Current Property
(Relinquished Property)

You must first sell your existing investment property (the "relinquished property"). The sale proceeds cannot be directly received by you per IRS requirements. Instead, we will handle your proceeds as your qualified intermediary then disburse these funds when your replacement property is ready to be funded.

3

Identify Replacement Property

Within 45 days of the sale of the relinquished property, you must identify one or more replacement properties and inform our office. Per IRS requirements, you can identify more than three properties, as long as the combined value does not exceed 200% of the relinquished property’s value.

4

Purchase Replacement Property

Within 180 days of the sale of your relinquished property (or the due date of your tax return for the year of the sale, whichever is earlier), you must close on the replacement property. The replacement property must be of equal or greater value than the relinquished property to fully defer taxes.

PRACTICE AREAS

About Us

At Commonwealth1031.com LLC, we specialize in facilitating smooth and efficient 1031 exchanges for real estate investors looking to defer capital gains taxes and maximize their investment potential. With our experience in the industry, we are committed to guiding our clients through every step of the 1031 exchange process, from the sale of relinquished property to the purchase of a replacement property.

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Our Mission

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Our mission is to empower real estate investors by providing expert advice, exceptional customer service, and seamless 1031 exchange solutions. We understand the complexities of the tax code and strive to make the exchange process as straightforward and stress-free as possible. Whether you’re a seasoned investor or new to 1031 exchanges, we are here to help you make informed decisions and achieve your financial goals.

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Why Choose Us?

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  1. Expert Guidance: Our team is composed of seasoned professionals with extensive knowledge of 1031 exchange regulations. We ensure you stay compliant with all IRS requirements and take advantage of the full benefits available to you.

  2. Personalized Service: We understand that every client’s situation is unique. We work closely with you to tailor the exchange process to meet your specific investment needs and objectives.

  3. Efficient Process: Time is of the essence in a 1031 exchange. Our streamlined process ensures that you stay on track with the 45-day identification and 180-day closing deadlines, minimizing the risk of missed opportunities.

  4. Transparency & Integrity: We believe in building lasting relationships with our clients based on trust and integrity. Our team provides clear, honest communication every step of the way, so you always know where you stand.

 

 

Michael J. Richards, Esq., Principal Commonwealth1031.com LLC

Commonwealth1031.com LLC is a 1031 Exchange company founded by Michael J. Richards, Esq. who has been assisting property investors with 1031 exchanges since 1997.

​​Our Values

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  • Integrity: We believe in honest, ethical business practices that prioritize your best interests.

  • Commitment to Excellence: We strive to provide exceptional service and continually improve our processes to serve you better.

  • Client-Centric: Your success is our top priority. We are dedicated to helping you achieve your investment goals through strategic 1031 exchanges.

 

Contact Us

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Ready to explore the benefits of a 1031 exchange? Contact us today to learn how we can help you defer capital gains taxes and reinvest in your future. We’re here to guide you through the entire process with ease and professionalism.

Quick Summary

A 1031 exchange allows real estate investors to defer paying capital gains taxes on an investment property when it is sold, as long as another similar property (like-kind property) is purchased using the proceeds from the sale.

 

  1. Like-Kind Property: The properties being exchanged must be of the same nature or character (real estate for real estate), though they don’t have to be exactly the same type of property (e.g., an apartment building for a commercial property).

  2. Relinquished Property: The property you sell in the exchange.

  3. Replacement Property: The property you purchase in the exchange.

  4. Qualified Intermediary (QI): You must use a QI, such as Commonwealth1031.com LLC, to hold the proceeds from the sale of the relinquished property until you acquire the replacement property. It's important that you do not directly receive the funds.

  5. Time Limits:

    • 45-Day Identification Period: You must identify potential replacement property (or properties) within 45 days of selling the relinquished property.

    • 180-Day Purchase Period: You must close on the replacement property within 180 days of selling the relinquished property.

  6. Tax Deferral: If the exchange is completed properly, you can defer paying capital gains taxes on the sale of the relinquished property.

 

Commonwealth1031.com will assist you with following the rules carefully to ensure the exchange qualifies for tax deferral.

Commonwealth1031.com LLC

3 Baldwin Green Common, Suite 209, Woburn, MA 01801
Email: info@commonwealth1031.com
Tel: 781-953-1668

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