The Solution for Deferring Capital Gains Tax

A tax-deferred Exchange is a method that allows a property owner to trade one property for another without having to pay any federal income taxes on the transaction.

In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale. But in an Exchange, some or all of the tax on the transaction is deferred until some time in the future, usually until the newly acquired property is sold. You may also hear these Exchanges referred to as “tax-free Exchanges” because the transaction itself is only partially taxed or not taxed at all.

Exchanges are granted authority under Section 1031 of the Internal Revenue Code and related Regulations. When an Exchange is conducted in accordance with the IRC §1031 and the Regulations, the tax on the gain realized in the sale of the old property is deferred (not recognized) until the property acquired in the Exchange is sold or otherwise disposed of in a taxable transaction.

Professionals Recommend Exchange Authority

Exchange Authority has provided Qualified Intermediary services for IRC 1031 exchanges since 1991, assisting thousands of clients and their advisors in completing timely, successful exchanges.

Fidelity Bank acquired the Exchange Authority in 2008 to aid our mission of helping you get where you want to be.

To speak to a 1031 expert about your next real estate transaction, call (978) 433-6061 today.