Expand your service offerings, and add even more value to clients looking to maximize their real estate investments with §1031 Tax-Deferred Exchange Services from First American Exchange Company. An often overlooked tax benefit, a §1031 Tax-Deferred Exchange is ideal for clients who sell and re-purchase properties for investment purposes only. It allows investors to defer capital gains taxes on exchanges of like-kind properties—in some cases, permanently.

The Basics Of A §1031 Tax-Deferred Exchange
To qualify for a §1031 Tax-Deferred Exchange, a property must meet three basic criteria:

1. The relinquished property must qualify by being held for investment purposes or use in a taxpayer’s trade or business.
   
   
2. Replacement property must be of like-kind which means any improved or unimproved real estate held for income, investment or business use.
   
   
3. Any income earned above and beyond the exchange is taxable and sometimes referred to as the “boot.” To avoid the boot, replace with property of equal or greater value.
   

Extra Benefit Without Extra Effort As the nation’s leading provider of business information and a Qualified Intermediary, First American facilitates the §1031 Tax-Deferred Exchange on your behalf, holding funds from a sale until your client re-invests them in a new investment property. By leveraging First American’s resources, you differentiate your services, enhance customer satisfaction and save your client’s money—all without any additional effort or processing on your part.

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§1031 Tax-Deferred Exchange enables investment property owners to:

• Potentially defer paying capital gains tax permanently
  
  
• Essentially receive an interest-free, no-term loan from the government
  
  
• Upgrade or consolidate property holdings
  
  
• Diversify by owning multiple properties, and multiple types of property
  
  
• Change into properties with fewer management responsibilities

Learn more about our suite of products and services and get in touch with your local First American representative today. Call 866.882.4353 or e-mail us at residential@firstam.com.