The IRS, through Section 1031 of the Internal Revenue Code, recognizes that an exchange of like-kind property is not a taxable event.
"Sec. 1031 (a) – Nonrecognition of gain or loss from exchanges solely in kind – (1) In general, no gain or loss shall be recognized on the exchange property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or investment."
Federal Standard Abstract through its associated company, Federal Standard Funding LLC can be appointed as the Qualified Intermediary. Both companies are bonded by Hartford Insurance Group.
For more information, please contact Rebecca Chong of the Corporate Office of Federal Standard Abstract at (212) 343-2282.