Internal Revenue Code Section 1031 provides a mechanism for investors to defer the capital gains associated with the sale of real estate via the reinvestment of those proceeds in new property or properties. This process is often called a 1031 Exchange
While an extremely valuable tax strategy in the hands of a real estate investor, the rules and procedures that must be followed to successfully complete a 1031 Exchange can be complex and somewhat confusing. It is important to inform your title company as early in the transaction process as possible that you will or intend to initiate a 1031 Exchange.
GRS | Title is well versed in the steps to carefully complete a 1031 Exchange. Please ask us to assist you in selecting a Qualified Intermediary (a “QI”), sometimes known as an Accommodator. A QI is required to hold the proceeds of a sale as a third party under the relevant IRS regulations during the period between the sale and the purchase of replacement property. GRS|Title Services has relationships with a number of excellent QI’s and have closed many complex 1031 exchange transactions with each of them.
For more information about 1031 Exchange Services or Qualified Intermediaries, please contact us or explore the link below.
The Federation of Exchange Accommodators – https://www.1031.org/
Like-Kind Exchanges Under IRC Code Section 1031 – http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031