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Washington

Qualified Intermediaries

Washington 1031 Exchanges

When it comes to conducting a 1031 exchange, the process is generally consistent across the United States due to the federal nature of the tax code. However, there are a few nuances that might make a 1031 exchange in Washington state slightly unique compared to other states.

  1. No State Income Tax: Washington is one of the few states that does not have a state income tax. This is particularly beneficial in a 1031 exchange because it means you won't have to worry about state taxes on the capital gains from the property you are exchanging. In other states, you might need to consider the impact of state capital gains taxes, which can complicate the calculation of your overall tax deferral.
  2. Real Estate Excise Tax (REET): While Washington does not have a state income tax, it does impose a Real Estate Excise Tax on the sale of real estate. This tax is applicable to all sales of real estate, including those that are part of a 1031 exchange. The rate can vary depending on the location and the price of the property, and it's something you'll need to factor into your transaction costs. However, the transfer of the relinquished property in a 1031 exchange is generally exempt from REET if the exchange is structured properly and qualifies under the IRS rules.
  3. Environmental Regulations: Washington state has robust environmental regulations that might affect real estate transactions, including those involving a 1031 exchange. For example, if the property you're exchanging has environmental issues, such as contamination, you might face additional complexities and costs in remedying these issues before you can successfully complete the exchange.
  4. Market Dynamics: The real estate market in Washington, particularly in areas like Seattle, can be highly competitive and dynamic. This might affect both the pricing and availability of suitable replacement properties within the strict timelines required for a 1031 exchange. Planning and market research become crucial in such environments to ensure you can identify and close on a replacement property within the 180-day window.

Overall, while the fundamental process of a 1031 exchange remains the same, these local factors in Washington can influence the specifics of your transaction. It's always a good idea to work with professionals who are familiar with both the federal aspects of 1031 exchanges and the local real estate market and regulations in Washington.

Washington State Tax Information

The Combined Rate accounts for the Federal capital gains rate, the 3.8 percent Surtax on capital gains, and the marginal effect of Pease Limitations on itemized deductions, which increases the tax rate by 1.18 percent.

State Rate

7.00%

Local Rate

0.00%

Combined Rate

32.00%

Deductions

None

1031 Exchange Providers in Washington

Starker Services, Inc.
deferred.com
Verified

Los Gatos, CA

Starker Services Incorporated is the nation's oldest, largest, and most experienced independent qualified Intermediary firm, successfully completing thousands of exchanges each year. Formed following the landmark Starker tax court decision, our sole function is to provide a staff of highly trained professionals available to discuss exchange strategies and prepare accurate documentation supporting all forms of tax deferred exchanges. Every major real estate firm has used Starker to counsel their clients in the strategies which may be available on the sale of real or personal property.
1031 Specialists
deferred.com
Verified

Denver, CO

We are the 1031 Specialists trusted by savvy investors to facilitate fast, transparent, and error-free 1031 exchange transactions.Ultra-responsive. Client first. Sophisticated.With 1031 Specialists, clients get the exchange experience they deserve.
1031 Services, Inc.
deferred.com
Verified

Seattle, WA

1031 Services, Inc., headquartered in Washington, has been providing qualified intermediary services for real property transactions under Section 1031 of the Internal Revenue Code across all US states since its founding in 1989 by Jeremiah M. Long. The company handles various types of exchanges including forward, reverse, multi-asset, and construction exchanges. Co-founder Mary Foster, along with Jerry Long, authored the leading treatise on tax-free exchanges, "Tax-Free Exchanges Under §1031," published by Thomson Reuters/West Publishing. Mary Foster continues to update this nearly 800-page book annually.The company is known for its high levels of expertise, professionalism, and customer service. Since 1996, it has co-sponsored a national seminar on advanced issues in like-kind exchanges, which has evolved into a three-day comprehensive conference with Mary Foster as a co-chair since 2004. She has also been a significant figure in the Federation of Exchange Accommodators (FEA), serving as its Past President and former Board Member, and remains active in legislative and administrative efforts related to IRC §1031.1031 Services, Inc. has a broad client base ranging from publicly held companies to individuals, and has facilitated exchanges involving various types of real properties and, prior to January 1, 2018, personal properties like artwork and equipment. The company's growth is attributed to referrals from professional advisors such as CPAs and attorneys, underscoring its reputation in handling both basic and complex exchanges.
The Exchange Connection
deferred.com
Verified

Snohomish, WA

The Exchange Connection, headquartered in Washington, specializes in conducting 1031 exchanges, also known as Starker Exchanges. They are recognized for their expertise and leadership in the Like Kind Exchange Industry, offering educational resources and services to both industry professionals and consumers. Real estate agents, title companies, tax preparers, and accounting firms rely on The Exchange Connection for accurate and current 1031 exchange advice. The company is noted for its exceptional customer service, assisting taxpayers nationwide in navigating the complexities of 1031 exchanges. They are a member of the Federation of Exchange Accommodators.
First American Exchange of Skagit County
deferred.com
Verified

Mount Vernon, WA

First American Exchange of Skagit County, headquartered in Washington, has been operating since 1971 under the name Guardian Northwest Title & Escrow Company. The company is committed to enhancing the real estate transaction experience for all parties involved. They emphasize the importance of recognizing and fulfilling customer needs and expectations, and they value their contributions to and support from the communities and companies they serve. They are not a member of the Federation of Exchange Accommodators.
Olympic Exchange Accommodators, LLC
deferred.com
Verified

Gig Harbor, WA

Olympic Exchange Accommodators, LLC is led by Jeffrey Paul Helsdon, who has been facilitating 1031 exchanges across the United States since 1990. He was the first Certified Exchange Specialist in the South Puget Sound area of Western Washington and one of the early recipients of the CES designation from the Federation of Exchange Accommodators (FEA). Despite the company's claim of being a proud member of the FEA, it is noted that they are not currently listed as a member. Mr. Helsdon also serves on the FEA's Government Affairs Committee. The company emphasizes the importance of professional credentials and extensive experience in handling 1031 exchanges, advocating against relying solely on the services of lower-level employees from title companies for such significant transactions.
Premier 1031, Inc.
deferred.com
Verified

Spokane, WA

Premier 1031, Inc., headquartered in Washington, emphasizes the importance of selecting a qualified intermediary (QI) with professional credentials and extensive experience for managing 1031 exchanges. They specialize in all types of exchange transactions and customize their services to meet diverse client needs. The company highlights its commitment to exceptional planning and assistance during the exchange process. Additionally, they comply with Washington state law RCW 19.310.040, which mandates either maintaining a fidelity bond of at least one million dollars or holding all client funds in a qualified escrow account or trust to protect clients against losses due to criminal acts by the exchange facilitator. Premier 1031, Inc. is not a member of the Federation of Exchange Accommodators.
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