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.
Commonwealth Land Title's Boston-based NCS units provide 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: