§1031 Exchanges — An Overview
Internal Revenue Code §1031
of property held for productive use in a trade or
§1031 exchanges provide investors with one of the best tax strategies for preserving the value of an investment portfolio. By using an exchange the investor is able to defer the recognition of capital gain taxes that would otherwise be incurred on the sale of investment property. The investor can then use the entire amount of the equity to purchase substantially more replacement property. To qualify as an exchange the relinquished and replacement properties must be qualified "like-kind" properties and the transaction must be structured as an exchange. Using Investment Property Exchange Services, Inc. as the "Qualified Intermediary" will provide the investor with the necessary reciprocal transfer of properties to create the exchange and the "Safe Harbor" protection against actual and constructive receipt of the exchange funds as required by §1031.
Investment Property Exchange Services, Inc.
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$30 million professional liability insurance~
Regional attorney managers and experienced exchange processing staff~
Substantial expertise in real estate and personal property exchanges,including:
Delayed
Exchange Requirements
the investor should always attempt to:
2. Reinvest all of the net equity in replacement property.
exchanger, but increasing debt cannot offset a reduction in exchange equity.
The information above was provided by IPX1031 visit their website at
www.ipx1031.com for more complete information