An exchange pursuant to IRS Code Section 1031 enables an investor to dispose of investment property while deferring the gain that would ordinarily be recognized on the sale by using the equity from the property to purchase another property. Of course, Section 1031 has a number of rules that must be followed in order to effect a valid exchange under the code.

1031 Exchanges require the involvement of a Qualified Intermediary who enters into an Agreement with the Exchanger.

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