The Internal Revenue Code imposes taxes when property is sold or transferred and a gain is realized. According to Section 1031 of the IRS Code, if a taxpayer adheres to strict code guidelines, all or a portion of the gain from the sale of business or investment property can be deferred or reinvested into a new "replacement" property. These deferred gains, as well as the gains from the new property, are not taxed until the property is transferred and fails to qualify for tax deferral.

To qualify for tax deferment, the taxpayer must structure the transaction as an exchange of one property for another of "like kind". Since 1921, tax-deferred or "1031" exchanges have evolved from a simple but restrictive two-party swap to today's highly strategic and sophisticated exchanges. Now possible for taxpayers large or small, 1031 exchanges can only be facilitated with the guidance and specialized services of a Qualified Intermediary.

Due to certain restrictions, your settlement agent or attorney may not qualify to act as your Qualified Intermediary. Please use our Contact Us page to request more information.