What is a 1031 Equity Exchange?

At EQUITY EXCHANGE LLC, we act exclusively as a Qualified Intermediary, handling exchanges across the United States. If you are unfamiliar with 1031 exchanges or the use of a an Intermediary in making exchanges safe, quick, and most importantly, defensible in the eyes of the IRS, this web site should help explain the process.
You may have heard them called Starker, like-kind, or 1031 exchanges. They all refer to Section 1031 of the Internal Revenue Code. Since the 1920's this section has allowed the investor in income producing or investment property to shelter their hard earned equity from the much talked about capital gains tax. Specifically, the code states: no gain or loss shall be recognized if property held for productive use in a trade or business or for investment purposes is exchanged solely for property of a like kind. Like kind property is loosely defined, leaving the investor a wide range of options. For example, raw land may be exchanged for improved land, an office building for several rental properties, several holdings in farmland for an apartment complex. Because the Code requires the properties be exchanged, the necessity arises for the Qualified Intermediary.