A tax-deferred exchange is an approved method of selling investment properties and acquiring one or more like-kind properties without paying any federal capital gains taxes whatsoever. Most states allow favorable capital gains tax treatment.

When such an exchange meets the criteria of the Internal Revenue Code Section 1031 and the regulations promulgated by the IRS, the taxes are deferred until sometime in the future. For investments held by individuals, the deferral can continue through any number of exchanges until the tax liability is extinguished by death.

The 1031 tax-deferred exchange is a powerful tool. First American Exchange Corporation can enable owners to use more of their equity to acquire investment properties and to move from a poor investment choice into a better income or equity position. We are international in scope, locally powerful, and solidly connected in every state.