“No gain or loss shall be recognized if property held for productive use in trade or business or for investments is exchanged solely for property of like-kind.” –Section 1031, United States Tax Code

IRS Code §1031 has many strict provisions. A Qualified Intermediary is necessary to navigate through the transaction.

A §1031 Exchange is not the same as tenant-in-common.

§1031 Real Estate Exchange (also known as a deferred or “Starker” Exchange) is part of the IRS Tax Code Section §1031.

Under IRC §1031, an investor can:

• Sell a property held for investment purposes and
• Defer capital gains from the sale if
• Another property of equal or greater value is purchased for investment purposes, subject to
• Following rules set forth by the IRS in Section 1031.

For more information on §1031 Exchanges, please speak with your tax advisor, or visit www.irs.gov .