Quality Investment Exchange Services, Inc.
Quality Investment Exchange Services, Inc. serves as an independent Qualified Intermediary and Exchange Accommodation Title holder for tax-deferred exchanges.
Q I Investment Exchange Services, Inc. also conducts educational seminars that we design to provide you with a higher level of understanding of the 1031 exchanges process.
These seminars will benefit real estate professionals, contractors, developers, lenders, investment and tax professionals, as well as the public.
To assure the success of a 1031 exchange you must use a qualified intermediary and seek the assistance of an experienced 1031 exchange professional.
You must stay with the IRS code rules “Safe Harbor” or risk a failed exchange and thus owe the capital gain taxes.
Some of the rules include:
Time limit rules of 45 days to identify and 180 days to acquire
Acquire like-kind property
Know the three types of like-kind properties
Know the many issues that relate to exchanging property
Know the exceptions to the rules
What is an IRS 1031 Exchanges
IRS Section 1031 Exchanges have been in the tax code since 1921.
The Starker decision of the 1979 Ninth Circuit Court of Appeals set the stage for our current modern exchange rules.
1031 Exchanges will provide immediate access to the equity from the sale of an investment property by deferring the capital gain taxes.
Internal Revenue Code 1031
“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 IRS 1031 exchange provides investors with one of the best tax strategies for preserving the value of an investment portfolio. By using an exchange, the investor is able to defer the recognition of capital gain taxes incurred on the sale of investment property.
To avoid paying any capital gain taxes in an exchange, the investor should always:
1. Purchase property of equal or greater value
2. Reinvest all of the net equity in replacement property or properties
3. Obtain equal or greater debt on the replacement property or properties
Benefits of IRS Section 1031 Exchanges
In addition to deferring the capital gain tax, tax deferred exchanges provide a wide range of non-tax opportunities:
Reposition of assets
Change property types
Increase depreciation deduction
Relief from management obligations
Provide for estate and retirement planning
Construct improvements on a property
Eliminate or create joint ownership
Improve cash flow
Allow for relocation
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