Page 4 - Old Republic Title Exchange

OLD REPUBLIC EXCHANGE IS WITH YOU
EVERY STEP OF THE WAY

What is a 1031 Exchange?
The Internal Revenue Code provides that a taxpayer may sell real
property and defer payment of capital gains tax, if that taxpayer
uses the proceeds to acquire a like-kind replacement property.

IRC §1031 provides that neither gain nor loss is recognized
if property held for investment or productive use in trade of
business is exchanged for property held for investment or
productive use in a trade or business.
Why Exchange?

• Capital gains tax is significant.
• Reinvestment into replacement property allows taxpayer to
leverage dollars that would otherwise be spent on taxes.
• Allows for non-income producing property to be replaced
with income-producing property.
• Allows taxpayer to diversify portfolio and minimize risk.

What We Do
• Act as Qualified Intermediary (QI), as required by the
Treasury Regulations.

• Prepare all documents required for the exchange.
• Consult with your tax advisor.
• Execute closing documents.

• Hold the exchange proceeds to avoid actual or constructive
receipt of funds.

• Coordinate the closing agents, real estate professionals, and
tax and legal advisors.

Always consult with your tax advisors. Their advice is essential
to a successful tax-deferred exchange. Your tax professional
will establish values, allocate sales and purchase price, and
recommend the appropriate structure for your transaction. Old
Republic Exchange does not provide tax or legal advice.

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