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Services We can provide client references for any of our services upon request. CLIENTS 1031 Services, Inc is a full service 1031 exchange company. We can act as either your qualified intermediary (QI) in a deferred exchange or your exchange accommodation titleholder (EAT) in a reverse or improvement exchange. We work with your tax counsel and you in structuring the transactions. However, we do not act as tax counsel in your exchange or review your tax returns. You must rely on your tax counsel to analyze the specific tax consequences in your exchange and to compute your realized and recognized gain. 
top Forward Exchanges This is the most common type of exchange. A forward exchange occurs when the relinquished property sells prior to the acquisition of the replacement property. A forward exchange is subject to strict time limits, which are set forth in statutory language of IRC § 1031. Our Exchange Procedure for a Deferred (Forward) Exchange 
We prepare the exchange documentation and forward it to your closing or escrow agent, along with wire transfer instructions for the exchange funds. The exchange funds are then invested in a money market account with Beneficial Mutual Savings Bank, or another bank of your choosing. Most importantly, your exchange funds are held in a qualified escrow account that is FDIC insured and is not commingled with any other client or business funds for investment purposes. For more information, see "Why are Your Exchange Funds Secure With Us?". Your tax identification number is on the account and you receive monthly statements directly from the bank showing the principal balance and accrued interest so you can independently verify the amount of your funds. After the closing on the relinquished property, you have 45 days to identify the replacement property. We will send you a letter specifying your 45th day, and containing information on how to identify the replacement property. You have 180 days from the closing of the relinquished property, or the due date of your tax return for the year of the transfer of the relinquished property, including extensions, to actually acquire all your replacement property. We prepare the exchange documentation and send it to the closing agent for the replacement property. The exchange funds are then wired from your exchange account with the bank to the closing agent. Reverse Exchanges If the replacement property must be acquired prior to transferring the relinquished property, the exchange can be structured as a "reverse" exchange under IRS Revenue Procedure 2000-37. These transactions are sometimes referred to as “parking arrangements” because legal title to either the relinquished property or the replacement property is "parked" with an "exchange accommodation titleholder" or EAT. You have a maximum of 180 days to sell the relinquished property to a third party buyer to complete the exchange once the reverse exchange commences with the acquisition of the replacement property. Title to each property is held in a separate limited liability company to insulate that property from the liabilities of any other client’s property. We pledge the membership interest of the limited liability company to you, or grant you a mortgage, to secure your interest in the property. Since 2005, we have acted as EAT for over $3 billion worth of properties. > Reverse Structures
top Improvement Exchanges  Improvements can also be made to your replacement property as part of the exchange. For example, a building can be constructed on land during the 180 day exchange period. We form a separate limited liability company to take title to the replacement property and then use the exchange funds or other financing to make the improvements. You manage the construction. We pledge the membership interest of the titleholder limited liability company to you, or grant you a mortgage, to secure your interest in the property and improvements. Please note that these are generally complex transactions and need to be properly structured. For more information on improvement exchanges, please contact us > Contact Us
Personal Property Exchanges We also act as qualified intermediary and exchange accommodation titleholder for personal property exchanges, such as aircraft, equipment, businesses, boats, artwork and other collectibles. Personal property exchanges are similar to real property exchanges, but require care with respect to sales and use tax and other issues. We work with your local sales tax advisor to determine the best state and local tax approach. Aircraft Exchanges  Aircraft has often been fully depreciated for federal tax purposes and when it is sold, the entire sales price will be taxable gain, and most or all of the gain will be taxed at higher ordinary income rates. Therefore, an exchange of the aircraft can defer substantial taxes. We act as both qualified intermediary in forward exchanges and exchange accommodation titleholder in reverse exchanges of aircraft. The safe harbor created by the IRS allows us to hold title to either the relinquished aircraft or the replacement aircraft for up to 180 days while the client locates a buyer for the relinquished aircraft. We work with the client’s counsel to minimize federal as well as state sales and use taxes on these transactions. For example, in some states, a forward or reverse exchange may be structured as a trade-in to obtain a credit against sales and use taxes.
Our affiliates, EPC Aircraft Sales LLC, a Washington limited liability company, and Oregon Aircraft and Vessel Exchange LLC, an Oregon limited liability company, specialize in exchanges of commercial and corporate aircraft and both are registered as a dealer with the FAA, and are also registered with the Capetown Registry.
top Artwork Exchanges Our affiliate, 1031 Artwork Services LLC, specializes in exchanges of artwork held for investment. The artwork can be sold through dealers or auction houses. The exchanges can be structured as either forward or reverse exchanges, and we work with local counsel to minimize sales and use taxes on the artwork exchanges. INFORMATION FOR OTHER QUALIFIED INTERMEDIARIES We work with many qualified intermediary (QI) companies throughout the United States, as both exchange accommodation titleholder (EAT) and consultant. We have participated as EAT in exchanges of all types of properties, such as real estate, equipment, airplanes, artwork, and boats. We have also worked on many improvement or “build to suit” exchanges. A significant portion of our business is safe harbor reverse exchanges. We structure the arrangement in accordance with your needs. We can work directly with the client, or only through you. We provide you with the expertise and backup necessary to make the exchange run as smoothly as possible. You act as QI and prepare your usual QI documentation. We prepare all the reverse exchange documentation. We use a sole purpose limited liability company as EAT and we often handle the set up of the LLC. The client is responsible for any state transfer taxes, although we work with the client and local counsel to determine how to possibly avoid or mitigate these costs. For more information on this service, please > Contact Us CONSULTING Our attorney, Mary B. Foster, is available to consult with you on most exchange matters. To contact Mary direct, please email her at mfoster@1031services.com
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