A 1031 Exchange is a tax deferred exchange of like-kind property. Real estate used for investment purposes can be sold (the exchanged property) and the proceeds from that sale can then be re-invested in the purchase of other real estate used for investment purposes (the replacement property).
More than one replacement property can be selected. The exchanger (person participating in the 1031 exchange) must take title to the replacement property in the same manner as (s)he held title to the exchanged property. The exchanger has 45 days from the sale of the exchanged property to identify the replacement property and 180 days from the sale of the exchanged property to close on the replacement property(ies).
The exchanger must not have access to the proceeds from the sale of the exchanged property. Therefore, a qualified intermediary must intervene. Title Professionals, Inc. has participated in numerous 1031 exchanges of like-kind real estate. Whether we are needed for title and closing purposes only or needed to act as the qualified intermediary, we have done it all.
However, we are not tax professionals and cannot provide tax advice. Please discuss the pros and cons of a 1031 exchange with your tax professional. If a 1031 exchange is for you, let our experienced and knowledgeable staff assist you through the process.