1031 Exchanges

Whether you’re an investor or a real estate professional who advises and works with others on investment properties, it is important to select the right closing partner for tax deferred exchanges which are commonly known as 1031s.
You can trust Transnation Title to provide 1031 exchange expertise for you through our West Michigan Exchange Services division. Led by Tom Host, our vice president of commercial operations, the team is ready to be the Qualified Intermediary professionals you want to handle your transactions safely and securely.
 

What is a tax-deferred exchange?

A tax-deferred exchange is a method by which a property owner trades one property for another without having to pay any federal income taxes on the transaction. In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property. However, in an exchange transaction, the tax is deferred until sometime in the future, usually when the newly acquired property is sold. These exchanges are sometimes called “tax free exchanges” because the exchange transaction itself is not taxed. The transaction must be structured in a way that exchanges one property for another, rather than the sale of one property and then the purchase of another. Through the use of a Qualified Intermediary like West Michigan Exchange Services, IRS regulations make exchanging easy, inexpensive and safe.
 

Where does the 1031 name come from?

Tax deferred exchanges are authorized by Section 1031 of the Internal Revenue Code. Requirements of Section 1031 and other sections must be carefully met, but when an exchange is done properly, the tax on the transaction may be deferred.

During the last two decades, West Michigan Exchange Services has completed more than 1,000 exchanges of all sizes. These transactions have ranged from simple two-party swap exchanges to complex reverse construction exchanges. We do not pool or commingle exchange funds into investment portfolios. We also carry $3 million in Errors and Omissions Insurance.

Choose Transnation Title’s West Michigan Exchange Services. We are experts who are committed to securing your transaction and making sure your funds are safe and accessible when you need them. Click on the booklet below to learn more.