No gain or loss is recognized upon the exchange of property held for productive use in a trade or business, or for investment, if the property received is of a like kind and is held either for productive use in a business or investment. This type of transaction has become known as a Starker exchange or a Section 1031 exchange. This rule does not cover inventories or other property held primarily for sale, stocks, bonds, notes, certificates of trust, beneficial interests, partnership interests, securities or evidence of indebtedness. Federal Form 8824 is used to report like-kind exchanges.
A QI is an individual or entity that works with investors to facilitate 1031 exchange and ensure adherence outlined by the IRS Section 1031.
The Internal Revenue Service requires that a qualified intermediary facilitate the exchange of properties under Section 1031.
Yes. It is important to recognize that tax treatment varies from state to state and it is recommended you review the tax policy for the state as part of the decision-making process
Yes. No matter how many properties(1 property for 2, or 3 properties for 2) the requirement is the exchange must go across or up in value, equity, and mortgage.