After opening escrow contact a qualifies intermediary ("QI"), who will secure a copy of the preliminary title report and the sales contract. The QI will then assign in as seleer for tax purposes. From the date the sale escrow closes, the exchanger has 45 days to identify replacement property and 180 days to acquire one of the properties identifies. When escrow is open on a replacement property the QI will assign in as purchaser.

The purpose of exchanging under IRC Code 1031 is to defer capital gains tax (15% Federal, 7.25% State of Hawaii) thereby allowing reinvestment of all sale proceeds. Hawaii residents and non residents doing a 1031 exchange are exempt from withholding 5% of the amount realized on the sale of real property.Unless selling improved real property for raw land, an exchange also avoids depreciation recapture.

REALTOR® Kathryn Petty-Tubman (S) is an 1031 Exchange expert on Maui.. She understands the ins and outs of South Maui, specializing in the upscale communities of Wailea and Makena, adjacent to comfortable, vibrant Kihei and just 30 minutes from the Kahului Airport.

For more information on 1031 Exchange on Maui, don't hesitate to contact Kathryn Tubman at (808)276-3311. You can also browse our website and be sure to check back regularly for daily updated listings. Our website is userfriendly that offers a wealth of information on Maui real estate.

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