Offering 1031 Exchange Services with a Safety Net


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Q-Exchange offers 1031 exchange accommodation and alternatives tax-deferring options for any home residence, business, investment property, or other highly-appreciated assets. Read more about how our cost-effective solutions may help your situation.

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No1031 offers 1031 exchange alternatives in real estate and tax-deferring options for a home residence, business, investment property, or other highly-appreciated assets. Read more about how our solutions may help your situation.

IRC §1031 Exchange

Also known as a like-kind exchange, allows investors to defer paying capital gains taxes on an investment property when it is sold, as long as another similar property is purchased with the profit gained. This strategy enables real estate investors to leverage their assets to increase and diversify their investment portfolios without the immediate tax burden. By adhering to the specific rules and timelines set by the IRS, investors can effectively roll over gains from one property to another, fostering growth and flexibility in their real estate endeavors.

§1031 Exchange with a Safety Net

66% of 1031 Exchanges either fail or partially fail due to strict rules and guidelines. This consequently can cost the exchanger hundreds or thousands of dollars in capital gains tax. Here at Q-Exchange, we plan ahead with multiple safety net options that further defer your capital gain while paying you income. Our most popular safety net option is the Installment Sale Trust and Delaware Statutory Trust.

Installment Sale Trust (IST) Safety Net

A Installment Sales Trust (IST) is a trust arrangement that combines special-purpose vehicles with installment sales. This financial strategy is commonly used in property transactions, especially mergers and acquisitions or the sale of a business, to defer capital gains tax over time.

The Installment Sale Trust is 100% IRS-accepted, allows cash liquidity, and has been around since the 70s. is dedicated to making the Installment Sale Trust more available to the public as it has been primarily used in M&A and large business deals in the past.

Additional Tax Deferral Solutions

Real Estate Solutions

With an IST, you're selling your asset to a trust and receiving payments over time. The trustee invests the money from the sale of your asset, aiming to generate a return similar or better to your current property. Similar to market value appreciation in real estate, the total trust value grows in addition to paying you income.

Business Solutions

A 1031 exchange can not be used for business sales. Exiting a business comes with similar or worse tax consequences as selling real estate. The IST is an excellent tax-advantageous solution for business owners looking to exit. Additionally, it provides a predictable income stream during their retirement years, helping to ensure financial security.

Cryptocurrency Solutions

With the SEC becoming more accepting to crypto, they are expecting more taxes to be paid on their gains. The IST allows you to turn realized crypto gains into an income-paying asset without having to give up to 40% of your portfolio to the IRS.

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1031 Exchange FAQ

What is a Section 1031 Exchange?

A 1031 Exchange, also known as a like-kind exchange or Starker exchange, is a tax-deferral strategy under Section 1031 of the Internal Revenue Code (IRC). It allows real estate investors to defer capital gains taxes on the sale of investment properties by reinvesting the proceeds into similar, or like-kind, properties.

How does a 1031 Exchange work?

In a 1031 Exchange, the investor sells an investment property and uses the proceeds to purchase another like-kind property. The process involves a qualified intermediary who holds the funds from the sale and facilitates the purchase of the new property. This must be done within specific timeframes to qualify for tax deferral.

What are the time limits for completing a 1031 Exchange?

The 1031 Exchange process has two critical deadlines: the identification period and the exchange period. The identification period requires the investor to identify potential replacement properties within 45 days of selling the original property. The exchange period requires the purchase of the new property to be completed within 180 days from the sale.

What qualifies as like-kind property in a 1031 Exchange?

Like-kind property refers to real estate that is of the same nature, character, or class. For example, an investor can exchange an apartment building for a commercial office space or raw land for a rental property. The properties must be held for investment or business purposes.

Can a 1031 Exchange be used for personal property?

No, the Tax Cuts and Jobs Act of 2017 limited 1031 Exchanges to real property only. Personal property, such as equipment, vehicles, or artwork, no longer qualifies for a 1031 Exchange.

What are the benefits of a 1031 Exchange?

The primary benefit of a 1031 Exchange is the deferral of capital gains taxes, which allows investors to reinvest the full proceeds from the sale into new investment properties. This deferral can result in significant tax savings and increased investment capital.

Are there any risks or drawbacks to a 1031 Exchange?

While a 1031 Exchange offers tax benefits, it also comes with risks. These include the strict timeframes for identifying and purchasing replacement properties, potential challenges in finding suitable like-kind properties, and the complexity of the exchange process. Consulting with a tax advisor and a qualified intermediary is crucial.

What is a reverse 1031 Exchange?

A reverse 1031 Exchange allows investors to purchase the replacement property before selling the original property. This can be beneficial in competitive markets where finding a suitable replacement property is challenging. The process is more complex and requires the use of an Exchange Accommodation Titleholder (EAT) to hold the replacement property until the original property is sold.

Can you convert a 1031 Exchange property into a primary residence?

Yes, it is possible to convert a 1031 Exchange property into a primary residence. However, specific holding requirements must be met to avoid immediate tax consequences. The property must be rented out for a minimum of two years, and the conversion should be gradual to ensure compliance with IRS rules.

How do I choose a qualified intermediary for a 1031 Exchange?

A qualified intermediary (QI) is a neutral third party that facilitates the 1031 Exchange process. When choosing a QI, look for experience, reputation, and understanding of the latest IRS regulations. Ensure they have the financial stability and insurance coverage to protect your funds throughout the exchange. Here at, we offer backup plans in case the 1031 exchange fails.

What are the most common mistakes to avoid in a 1031 Exchange?

Common mistakes include missing the 45-day identification deadline, failing to complete the exchange within 180 days, improperly identifying replacement properties, and using proceeds from the sale for non-qualified purposes. Working with experienced professionals can help avoid these pitfalls.

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