Midtown Escrow and Exchange, LLC
What is a “Like-Kind Exchange?”
Internal Revenue Code Section 1031 allows individuals and entities to “exchange” investment property or other property that is held for productive use in a business or trade but not primarily for sale. The exchange, rather than being a direct swap of property between two individuals, is accomplished by the sale of the investment, or other property, to one third party and the purchase of replacement property from another third party within a designated time period. Under IRC Section 1031, capital gains from the sale of investment or income bearing property are deferred so long as the Exchangor does not receive cash or other benefits from the sale. To satisfy the no cash or benefits requirement, the IRC Section 1031 allows a Qualified Intermediary to receive the Exchangor’s interest as the seller of the property (the proceeds) and the Exchangor’s interest as the buyer of replacement property, thus becoming an actual participant in the transaction.
Midtown Escrow and Exchange, LLC provides Qualified Intermediary services for property exchanges pursuant to Internal Revenue Code Section 1031. In this capacity, Midtown Escrow and Exchange, LLC prepares and distributes the documents necessary to complete the exchange transaction, including closing instructions to the title or escrow officers handling the transactions. Additionally, because receipt of any of the proceeds by the Exchangor from the sale of the property would result in those proceeds being taxable, Midtown Escrow and Exchange, LLC holds the proceeds from the sale in a separate exchange account until they are needed for the purchase of replacement property.
What sets us apart is the level of personal service we provide. Our offices are open from 8:30 am to 5:00 pm CST and we are always available to assist our clients with any questions they may have about the exchange process. In addition to the necessary exchange documentation, we provide written notification of designation and exchange deadlines and oral reminders to make sure time requirements are met. We also have an attorney on staff who is experienced in exchange transactions