Steamboat Springs 1031 Exchanges

Fees: $300.00 fee to set-up the exchange and the disposition of one relinquished property, plus $300.00 fee for each additional relinquished or replacement property; additional value-based set-up fee for each relinquished property with a sales price of $300,000 or more per schedule below:

Property Value(per Sales Price) Value-Based Fee
Under $300,000                                                  Included in $300.00 Set-Up Fee
$300,000 to $999,999                                       .10% of Property Value Over $300,000
$1 Million to $4,999,999                                   .05% of Property Value Over $300,000
$5 Million and Above                                         .025% of Property Value Over $300,000

For example, the fees for an exchange with one relinquished property valued at $350,000, and one replacement property, would total $650.00 ($300.00 set-up fee, plus $50.00 value-based fee, plus $300.00 for one replacement property).

Reverse 1031 Sample Costs

The basic fee to set up a “Qualified Exchange Accommodation Arrangement” (“QEAA”) to hold title to a “parked property” for up to 180 days is $2,500.00 plus an amount equal to One-Tenth of One Percent (.10%) of the value of the parked property. The value of the parked property is its acquisition cost plus the costs of any improvements made while such property is held in the QEAA.

In addition to the basic fee, a minimum fee of $300.00 is charged if financing with a third party is necessary to acquire the parked property, and a fee of $300.00 for documentation and services if improvements are to be made to the parked property, all at the time of acquiring the parked property in the QEAA.

For example, the fee to set up a QEAA to acquire and hold a parked property with a purchase price of $500,000 involving a bank loan would be $3,300.00 ($2,500.00 + .10% of $500,000 + $300.00), plus costs of approximately $150.00 to set up the title holding entity and other miscellaneous items. If $200,000 of improvements are made to the parked property while held in the QEAA, then an additional set up fee of $300.00 would be due upon acquisition of the parked property, and $200.00 (.10% of $200,000) upon disposition of the parked property.

Please note that the fee for handling a QEAA does not include accommodating a forward exchange involving the parked property, and the QEAA fees may be adjusted based upon the complexity of the transaction and the length of time National 1031 Exchange Service holds title to the parked property.

Information derived from National 1031 Exchange Service at http://www.national1031.com/index.html to give an approximation for what you might be expected to pay for fees incorporated with 1031 Exchanges. These fees might vary depending upon whom you use to facilitate your exchange.

We are happy to help you in with 1031 exchanges, but we also rely on the experts to help make sure this is a smooth and painless process. While contemplating benefits of 1031 exchanges we strongly encourage you to consult a tax official to discuss any unanswered questions or special circumstances, which may apply to you specifically.

Jon Wade  – Broker Owner  Colorado Group Realty, LLC
970-819-6930 or jon@mybrokers.com
509 Lincoln Ave Steamboat Springs, CO 80477