Tax Deferred

Metro Title Associates

We are recognized as industry leaders in this area, because we provide the most knowledgeable, creative, and trusted staff in the nation. Every exchange is given the same professional attention no matter the size or complexity, and every client receives on-time notifications regarding time requirements for their exchange.


From straightforward "one-for-one exchange" options to complicated "reverse" and "construction build-out" exchanges, you can expect the type of assistance and documentation needed to ensure that your transaction meets all IRS guidelines. Do you have questions regarding your exchange? Just "Ask Al" to get a timely response to your concern.

Tax-deferred exchanging is an investment strategy that is often considered by anyone who owns investment properties. Anyone involved with advising or counseling investors, including real estate agent, lawyers, accountants, financial planners, enrolled agents, tax advisors, escrow and closing agents, and lenders, should have information regarding tax-deferred exchanging.


A tax-deferred exchange is a method allowing a property owner to trade one property for another without paying federal income tax on the transaction. In an ordinary real estate transaction, property owners are taxed on the gain realized by the sale of property. In an exchange, the tax on the transaction is deferred until the future, usually when the acquired property is sold again.

These exchanges are often called "tax-free exchanges," because the exchange itself is not taxed. Tax-deferred exchanges are authorized by Section 1031 of the IRS Code. The requirements of Section 1031 and other sections must be met fully, but when done properly the tax on the transaction can be deferred.

In an exchange, a property owner disposes of one property and acquires another one. The transaction has to be structured in a way that is truly an exchange of one for another, as opposed to the sale of a property and the purchase of another one.

Today, a sale and reinvestment in a replacement property converts into an exchange through an agreement and the services of a qualified intermediary. That is generally a neutral fourth party who ensures the exchange is structured the right way.

The IRS regulations make performing an exchange easy, inexpensive, and very safe.