Disclaimers
What We Do
Alabama 1031 Property Exchange, Inc. serves exclusively as your qualified intermediary pursuant to a Deferred Exchange Agreement. Our role is limited to holding your exchange proceeds in escrow, coordinating with your closing agents upon the disposition of relinquished property and acquisition of replacement property, and releasing funds only as authorized under section 1031 and the regulations thereunder.
What We DO NOT Do
Alabama 1031 does not provide legal or tax advice of any kind. Specifically, we do not advise with respect to:
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Real estate purchase agreements or title issues
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Investment decisions, including any decision to invest in a Delaware Statutory Trust or other syndicated interest
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"Go zone" or other recapture issues associated with depreciable relinquished property
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Whether relinquished property has been held for investment or for productive use in a trade or business as required by section 1031
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Whether replacement property is being acquired with an intent of holding such property for investment or for productive use in a trade or business as required by section 1031
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Potential outcomes associated with "drop and swap" or "swap and drop" exchange structures
Alabama 1031 does not guarantee that you will defer all taxable gain in connection with your exchange, as the amount of gain deferred depends on factors outside our control — including the amount you choose to reinvest in replacement property, your compliance with the identification and exchange period deadlines, and whether your relinquished and replacement properties qualify as held for investment or for productive use in a trade or business.
Your
Responsibilities
The identification of replacement property within the 45-day identification period — and the required specificity of description — is your responsibility. Arranging the acquisition of replacement property within the exchange period is your responsibility.
If the due date of your income tax return falls before the 180th day following your sale, it is your responsibility to work with your CPA to extend that due date in order to preserve the full exchange period. Upon completion of your exchange, your CPA will need to prepare a Form 8824 for attachment to your income tax return.
We recommend consulting your attorney and CPA before proceeding with any exchange, including with respect to your income tax basis in the relinquished property, the amount of potential taxable gain, and the amount you would need to reinvest to defer all realized gain under section 1031.