What does a 1031 Exchange accomplish?

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Section 1031 of the Internal Revenue Code enables investors and business owners to take advantage of a tremendous vehicle to build wealth and defer tax obligations. By completing a 1031 exchange, the taxpayer can sell investment property, and use all of the equity from the sale to acquire other investment property, without having to immediately pay taxes on the gain from the property sold.

The IRS requires that any taxpayer taking advantage of Section 1031 retain the services of an independent Qualified Intermediary (like a trustee) to facilitate the exchange. A Qualified Intermediary, like Brazos 1031, must be hired before the sale of the currently-owned investment property.

 

At Brazos 1031 Exchange Company, we act as qualified intermediary / exchange accomodator for real estate investors and companies doing 1031 real estate exchanges throughout Texas.