1031 Exchange
What is a 1031 Exchange?
The Internal Revenue Code* provides that a taxpayer may sell real property held for productive use in a trade or business or for investment and defer payment of capital gains tax, if that taxpayer uses the proceeds to acquire a like-kind replacement property.
Why Exchange?
- Capital gains tax is significant
- Reinvestment into replacement property allows taxpayer to leverage dollars that would otherwise be spent on taxes
- Allows for non-income producing property to be replaced with income-producing property
- Allows taxpayer to diversify portfolio and minimize risk
What Old Republic Exchange Does
- Act as Qualified Intermediary (QI), as required by the Treasury Regulations
- Prepare all documents required for the exchange
- Consult with your tax advisor
- Execute closing documents
- Hold the exchange proceeds to avoid constructive receipt of funds
- Coordinate with the closing agents, real estate professional, and tax and legal advisors
As a result of tax reform legislation, 1031 exchanges are no longer allowed on personal property, effective January 1, 2018. Below are examples of like-kind real property transactions that still qualify for IRC Section 1031 treatment:
- Commercial building for a ranch or farm
- A leasehold interest of 30 years or more for a fee interest
- Rental house for farmland
- Improved real property for unimproved real property
- Conservation easement in one farm for fee interest in another farm
- A utility easement for a utility easement
For 1031 exchange assistance in Western states, please call 800-738-1031
For 1031 exchange assistance in Eastern states, please call 866-543-1031
Learn more about Old Republic Exchange, the benefits of 1031 exchanges and more by visiting their website.
Visit Old Republic Exchange*IRC §1031 provides that no gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.
This material is for educational purposes only and does not constitute legal advice. We assume no liability for errors or omissions. As a Qualified Intermediary, Old Republic Exchange, its officers and employees do not provide, and this communication is not intended to be, tax or legal advice.
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I recently used this app to book a hotel for my vacation, and I was impressed with how easy it was to navigate. The interface is user-friendly, and the booking process was smooth. However, I encountered a minor issue with the payment gateway, which took a bit longer than expected. Overall, a great experience! Test_320
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I recently used this app to book a hotel for my vacation, and I was impressed with how easy it was to navigate. The interface is user-friendly, and the booking process was smooth. However, I encountered a minor issue with the payment gateway, which took a bit longer than expected. Overall, a great experience! Test_320
Roj Test
Test......
4546 7987979
Test Review...... Please be aware that if your relinquished property closing occurs in October, November of December, the deadline to complete your exchange may be your tax deadline instead of 180 days after your relinquished property closing. If this is your circumstance, you may file an extension of your tax return
Roj Ray
This is great!
Q Bressler
Thanks for submitting a comment! 1031 Exchange will be notified and once it has been approved it will display here. Have a great day!