Relinquished Property
The qualifying investment or business-use real estate being sold or transferred.
Purvis & Company Exchange
Nationwide 1031 Exchange Services for Real Estate Investors
A properly structured 1031 exchange may allow real estate investors to defer recognition of qualifying taxable gains when selling investment or business-use property and acquiring replacement real estate.
Purvis & Company Exchange helps coordinate exchange documentation, important deadlines, closing communications, and the qualified intermediary process for eligible transactions throughout the United States.
Planning to sell investment property? Contact us before the sale closes so the exchange can be structured and documented in advance.
What Is a 1031 Exchange?
Section 1031 of the Internal Revenue Code permits qualifying taxpayers to exchange real estate held for investment or productive use in a trade or business for other like-kind real estate, potentially deferring recognition of taxable gain.
In a typical delayed exchange, an investor sells the relinquished property, the exchange proceeds are handled under a qualifying intermediary arrangement, and the investor acquires eligible replacement property within prescribed time limits.
Replacement Property
The qualifying like-kind real estate acquired as part of the exchange.
Common property types include rental homes, apartment buildings, commercial property, farmland, warehouses, and vacant land held for investment. Personal-use homes and property held primarily for resale generally do not qualify.
The 45-Day and 180-Day Exchange Deadlines
In a conventional delayed exchange, these periods generally begin on the date the relinquished property transfers.
Identify Replacement Property
The taxpayer generally must provide a properly completed, written identification of replacement property within 45 calendar days of the sale. Specific identification limitations apply.
Acquire Replacement Property
The taxpayer generally must receive replacement property by the earlier of 180 calendar days after the sale or the applicable income tax return due date, including extensions.
These periods overlap; they do not run consecutively. Certain statutory or IRS relief provisions may affect deadlines in specific circumstances. Consult your exchange professional and CPA.
Exchange Structures We Can Discuss
We accept inquiries involving traditional delayed exchanges as well as more specialized exchange structures.
Delayed Exchanges
Sell the relinquished property first, then acquire qualifying replacement property within applicable deadlines.
Reverse Exchanges
Explore a properly structured arrangement involving acquisition of replacement property before the relinquished property sells.
Improvement Exchanges
Discuss arrangements involving qualifying construction or improvements to replacement property within the required exchange structure.
How to Start a 1031 Exchange
The process begins by reviewing basic transaction information and determining what documentation is needed before the property sale.
Submit Your Inquiry
Tell us about the property you're selling, your anticipated closing date, and your reinvestment plans.
Review Exchange Details
An exchange representative reviews the transaction, taxpayer, parties, and applicable documentation.
Prepare the Exchange
The Qualified Intermediary coordinates exchange agreements, assignments, and required closing instructions.
Complete the Transaction
Coordinate identification, replacement property acquisition, exchange proceeds, and documentation within applicable requirements.
Information Needed to Begin Your Exchange
Having basic details ready helps the exchange team review your transaction.
Transaction Information
- Exchanger and titleholder names
- Contact details and authorized signers
- Property address and sale information
- Estimated sale price and closing date
- Closing agent contact information
- Purchase and sale agreement
- Available title commitment
Additional Entity Documentation
- LLC: operating agreement, when requested
- Corporation: signing authority or resolution
- Trust: relevant trust documentation
- Partnership: applicable partnership agreement
- Other taxpayer or ownership information requested by the QI
Do not email Social Security numbers, tax identification records, bank instructions, or sensitive entity documents unless the exchange team provides an approved secure submission method.
Qualified Intermediary & Exchange Coordination
A Qualified Intermediary is a central participant in most delayed exchanges. The QI coordinates required exchange agreements, facilitates the exchange of relinquished and replacement properties, and administers exchange proceeds under the applicable agreement.
Purvis & Company 1031, LLC is the Qualified Intermediary for exchanges conducted under its exchange agreements.
Purvis & Company Exchange provides the customer-facing service and coordination experience, working with exchange personnel and transaction participants as needed.
Key Considerations Before Selling Investment Property
Exchange eligibility depends on the facts of each transaction. These are among the issues that should be reviewed early.
Qualified Property Use
Property generally must be held for business or investment rather than primarily for personal use or resale.
Same Taxpayer Requirement
The same taxpayer generally must dispose of the relinquished property and acquire the replacement property. Entity tax classification matters.
Reinvestment & Boot
Cash received, debt changes, non-like-kind consideration, and other transaction details may result in taxable gain.
Related Parties & Ownership
Related-party transactions and proposed ownership changes may require specialized tax analysis before closing.
Frequently Asked Questions About 1031 Exchanges
Do I need a Qualified Intermediary before closing?
A typical delayed exchange should be established with the QI before the sale closes, so the required agreements and proceeds arrangements are in place.
Who is the Qualified Intermediary for Purvis & Company Exchange?
Purvis & Company 1031, LLC serves as the Qualified Intermediary under its applicable exchange agreements.
Can I exchange a rental house for commercial property?
Potentially. Qualifying U.S. real property held for investment or business use can generally be like-kind to other qualifying U.S. real property.
Can I buy replacement property before selling my current property?
A reverse exchange may permit this through an appropriate parking arrangement, often involving an Exchange Accommodation Titleholder. These structures require advance planning.
Can I keep part of the proceeds from my sale?
Some exchanges involve taxable cash or other nonqualifying consideration, commonly called boot. Taking proceeds can reduce or eliminate the amount eligible for tax deferral.
Does my personal residence qualify?
A property held primarily for personal use generally does not qualify for Section 1031 treatment. Rental and mixed-use situations may need additional analysis.
Are your 1031 services available nationwide?
Yes. Purvis & Company Exchange accepts inquiries involving U.S. investment property transactions nationwide, subject to applicable requirements and service availability.
What do I need to start?
Begin with our online exchange inquiry. Useful initial documents include the proposed sales contract, property information, closing date, and available title commitment. Additional information may be requested.
Planning a 1031 Exchange?
Whether you're selling a rental home, commercial property, investment land, or another qualifying asset, start the exchange discussion before your sale closes.
Qualified Intermediary services are provided by Purvis & Company 1031, LLC, a wholly owned subsidiary of Accruit LLC. Purvis & Company Exchange provides the branded inquiry and coordination experience and is not itself the Qualified Intermediary. Exchange services are subject to the applicable written agreement. This material is educational and does not constitute legal, tax, or investment advice. Consult independent tax and legal advisors regarding eligibility, deadlines, ownership, and tax consequences.
