1031 Exchange Intermediary, LLC provides real estate exchange services for investors qualified to take advantage of Section 1031 of the Internal Revenue Code.   The IRS Code provides a vehicle to defer capital gains tax on the sale of one investment property when exchanging it for another "like kind" investment property.

Phone:  610-644-6437

Fax:  610-717-1401

Answers to Your Questions

"What type of properties do not qualify for a tax deferred exchange?"

The property must be used in business or held for investment. IRS rules do not permit the exchange of a primary residence, a vacation home or a second home.

"Who can qualify for a tax deferred exchange?"

Generally speaking, anyone holding property primarily for sale will not qualify for deferred tax treatment under IRS 1031.

"How can a real estate investor benefit from a Section 1031 exchange?"

The key to understanding how you can benefit from a tax deferred exchange lies in the Internal Revenue Code's very broad definition of "Like Kind" property. The IRS rules permit investors to exchange real estate used in business or held for investment for other real extate the investor intends to use in business or hold for investment. Numerous possibilities exist under the rules. The investor has the ability to exchange a single-family rental property for an apartment bulding or a condominium for a triplex or city property for country property.

General Requirements

• Taxpayer must be an investor - not a dealer.
• Property must be used in taxpayer's business or held for investment.
• Replacement property price must be equal to or more than the relinquished property price.
• Mortgage on replacement property must be equal to or more than mortgage on the relinquished property.
• Taxpayer may not receive the proceeds.
• Taxpayer must use a qualified intermediary or accommodator.
• Strict time requirements and formalities must be followed.

Caution!

• 1031 Exchanges are not a "Do It Yourself" activity.

• Before you take any action discuss your specific tax situation with a tax professional to determine if a tax deferred exchange is right for you.