2. 1031 Exchanges simply defer taxes. Section 1031 is not a tax loop hole or tax avoidance, but sound tax code that has been used for almost a century to promote the US economy.

3. 1031 Exchanges allow taxpayers to defer capital gains tax, depreciation recapture tax, and the investment income tax imposed by the Affordable Health Care Act, and state tax.

4. To completely defer payment of any capital gains taxes, taxpayers need to purchase new property with a value equal to or greater than the property that is being sold. In some cases the taxpayer may purchase a property of lesser value and still defer a significant amount of tax.

5. 1031 Exchanges follow strict time limits. Once the Relinquished property is sold, generally speaking, taxpayers have a total of 180 days to purchase Replacement property. The taxpayer must identify the new property(ies) that they will purchase within the first 45 days of the 180 days.

6. Exchanges between related parties are allowed but specific rules must be followed.

7. Taxpayers must utilize the services of a Qualified Intermediary (QI), such as IPX1031®, when participating in a 1031 tax-deferred Exchange. The QI provides guidance, documentation and secures the taxpayer’s funds between the sale and purchase of properties.

8. QIs are not regulated by the Federal government and most State governments. Therefore, it is up to taxpayers to ascertain the competency and safety of their chosen QI. Questions that taxpayers should ask include:

• Who owns the 1031 QI and how financially stable are the owners?

• What criteria does the 1031 QI use to pick its depository banks?

• Does the QI have a Fidelity Bond, Errors and Omissions insurance and a Corporate Guaranty?

9. There are many non-tax reasons to exchange. 1031 Exchanges can be used as an estate planning tool, to diversify or consolidate portfolios, to increase cash flow, to set a new depreciation schedule or to exchange out of fully amortized properties.

10. Taxpayers should always seek tax advice from their financial planner, tax attorney or CPA for their specific tax and investment goals and situation.

Investment Property Exchange Services, Inc. (IPX1031®) is the leading national Qualified Intermediary providing a full range of tax-deferred exchange services including forward, reverse and build-to-suit transactions. We look forward to helping you and/or your clients maximize qualifying investments through a 1031 Exchange strategy. Visit www.ipx1031.com for more information or contact us with any questions.

Ron Ricard

Certified Exchange Specialist

Vice President, Account Executive

Investment Property Exchange Services, Inc. (IPX 1031)

ron.ricard@ipx1031.com

(408) 483-1031 (phone or text)

(209) 612-0159 (phone only)

(877) 747-7875 toll free

www.ipx1031.com

www.ipx1031.com/ricard

Puneet Bhargava, 

Your Realtor for life

Five Star Agent Award Winner 2012 and 2013

Executive Club Award RE/Max 2012-2013

Realtor, ( CA )   BRE Lic #  01859500 

Commercial and Residential Real Estate

Certified Distressed Property Expert ( Short Sale Expert)

Puneet Bhargava, Broker Associate/ Realtor 

BRE Lic # 01859500

Guarantee Real Estate Office BRE # 00859360

180 W. Bullard 

Clovis, CA 93612 

(Villa and Bullard)