The Internal Revenue Code provides that a taxpayer may sell an asset (personal property or

real property) and defer payment of capital gains tax if that taxpayer

uses the proceeds to acquire a like kind replacement asset. 

Why Exchange?

Capital gains tax is significant:

Reinvestment into replacement property allows taxpayer to leverage dollars that would otherwise be spent on taxes:

Allows for non-income producing property to be replaced with income producing property; and

Allows taxpayer to diversify portfolio and minimize risk 

What Does a “Qualified Intermediary” do?

Act as “Qualified Intermediary” as required by the Treasury Regulations:

Prepare all documents required for the exchange:

Consult with your tax advisor

Execute closing documents

Hold the exchange proceeds to avoid constructive receipt of funds; and