1031 Exchange
Facilitating real estate transactions is what we do
Through our agreement with a nationally recognized third-party Qualified Intermediary, we provide a streamlined, coordinated approach to 1031 tax-deferred exchanges. This platform aligns our transaction-level involvement through the industry's only 1031 exchange workflow technology, and the exchange facilitation capabilities of one of the nation’s leading Qualified Intermediaries.
1031 Tax-Deferred Exchanges
A 1031 exchange can range from a straightforward tax-deferral strategy to a highly technical process involving multiple properties and entity structures such as tenant-in-common (TIC), where missteps can result in significant capital gains tax exposure.
Regardless of complexity, a successful exchange requires precise coordination and strict compliance at every stage—making the selection of an experienced, nationally recognized Qualified Intermediary with the infrastructure and technology to execute across all exchange structures critical.
Enhanced Visibility – On Demand Access
Our national, third-party qualified intermediary provides clients and their advisors with the industry's only 1031 software, so they can remain informed of transaction timelines, funds available, and other pertinent information throughout the 1031 exchange process.
In-House Coordination
Through our agreement with a national third-party qualified intermediary we are able to help clients coordinate all types of 1031 exchange structures including:
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Forward 1031 Exchange
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Reverse 1031 Exchange
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Simultaneous 1031 Exchange
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Improvement / Construction 1031 Exchange
1031 Exchange Expertise
Our clients are provided access to attorneys with subject matter expertise as well as seasoned Certified Exchange Specialists® (CES®).
Security of Funds
Have confidence in the security of your exchange funds. Our national, third-party qualified intermediary provides coverage including: $50 million fidelity bond, $25 million errors & omissions, and $20 million cyber liability.
A 1031 exchange allows property owners to defer capital gains taxes by reinvesting the proceeds from the sale of investment real estate into qualifying replacement property, in accordance with IRS regulations.
A qualified intermediary is an independent third party required by the IRS to facilitate a 1031 exchange by holding sale proceeds and coordinating the exchange process to ensure compliance.
Most real estate qualifies for a 1031 exchange provided it has been held for investment or businesses purposes – not for personal use. This includes commercial and residential rental properties, provided IRS requirements are met.
Examples Include
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Commercial real estate (e.g., office buildings, retail centers, warehouses)
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Residential rental properties (e.g., single-family rentals, apartment complexes)
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Vacant land held for investment
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Industrial properties
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Agricultural land or farmland
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Oil, gas, and mineral interests (in some cases)
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Delaware Statutory Trust (DST) interests
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Tenant-in-Common (TIC) interests
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Long-term leasehold interests (30+ years)
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All 1031 exchanges regardless of the type have a 45-day identification period and a 180-day exchange period.
For a 1031 exchange to be in accordance with IRC § 1031, within 45-days of the close of the sale of the Relinquished Property the exchanger must identify their potential replacement property(ies) in writing to the qualified intermediary. The replacement property(ies) description must be unambiguous and specific using a physical address or legal description.
There are three distinct identification rules that the exchanger can use, and they can choose the appropriate rule for their specific exchange situation. These rules are the (1) 3-Property Rule; (2) 200% Rule; and (3) 95% Rule.
An exchanger can identify up to three properties without regard to the fair market value of the properties and they must close on at least one of the identified properties for the exchange to be valid.
An exchanger can identify more than three properties, but the fair market value of all properties combined cannot exceed 200% of the fair market value of the Relinquished property(ies).
An exchanger can identify infinite properties, the combined value of which exceed 200% of the value of what they sold, but they must acquire at least 95% of the fair market value of the properties they identify.
*1031 exchange services are provided by a qualified intermediary that is wholly owned subsidiary of Accruit LLC, an Inspira Financial solution. The provider of these materials is not an agent or employee of, nor otherwise affiliated with, the qualified intermediary. The above coverages and processes are available through Accruit, LLC.
The client seeking to facilitate a 1031 exchange is solely responsible for timely submittals of all required documents directly to the qualified intermediary.
Praxis Title & Escrow LLC, including any affiliates, principals, or employees, may receive a portion of the fees generated from a 1031 Exchange submittal. Acknowledgement and agreement to these terms is required when initiating a 1031 exchange via this website or with any Praxis team member.