The 1031 Exchange Rule
A property transaction qualifies for a deferred tax
exchange if it follows section 1031 of the Internal
Revenue Code (IRC) along with corresponding treasury
regulations. The 1031 code is defined as follows:
No gain or loss shall be recognized on the exchange of
property held for productive use in a trade or business or
for investment if such property is exchanged solely for
property of like kind which is to be held either for
productive use in a trade or business or for investment.
The 1031 exchange rule is based on “Like Kind” investment
properties held for productive purpose in business or
trade. All proceedings must be facilitated by an exchange
accommodator known as a Qualified Intermediary (QI). In
simple terms, the QI is responsible for acquiring the
relinquished property from the taxpayer and transferring
it to the buyer, and acquiring the replacement property
from the seller and transferring it to the taxpayer.
Investment Property Exchanges Services, Inc.
WestendTitles's Westend Titles -based NCS operation provides
best-in-class QI services through Investment Property
Exchange Services Inc. (IPX), which is also a member of the
FNF family of companies. As the national leader in 1031
Exchange services, IPX works with you and your advisors to
provide proven exchange solutions that enhance business
portfolios and maximize investment dollars. Your partnership
with IPX comes with unparalleled financial strength and
safety nets:
- Fidelity Bond of $100 million
- Written Performance Guaranty of $50 million
- Errors & Omissions Insurance of $30 million
Visit the IPX1031 website for more information on this
unique investment strategy: