What is a Tax-Deferred Exchange?

The laws governing these exchanges were originally enacted in 1921-23. The provision promotes real estate sales, continuity of investment, savings & estate planning by encouraging the exchanging of investment real estate and business properties in a way that would be free from the taxes which are due when property is otherwise sold.

·        It is the method by which a property owner disposes of one property and acquires another without paying federal income tax on any profits. 

·        It is allowed under Section 1031 of the Internal Revenue Code. 

·        It defers tax on gain from disposal of relinquished property until and only if the replacement property is sold rather than exchanged again. 

·        It requires an exchange of properties rather than a sale of one property and the purchase of another. 

·        It is facilitated by means of an Exchange Agreement and the use of a Qualified Intermediary.

E-mail: qis@1031exchangeservices.com

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QUALIFIED INTERMEDIARY SERVICES, LLC
2740 Bronson Blvd., Kalamazoo, Michigan 49008-2361
Tel: 269.385.1031 Toll Free: 866.385.3400
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E-mail: qis@1031exchangeservices.com