1031 Title Exchange

Empowering Real Estate Owners
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SEMO Exchange, LLC is here to empower real estate owners.

As of February 2024, SEMO Title handles 1031 Like-Kind Exchanges in-house through SEMO Exchange, LLC. In the past, SEMO Title was only a facilitator in these transactions.
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What is a 1031 Exchange?

A 1031 Exchange is a tax-deferral transaction that permits a taxpayer to sell one property and acquire another without incurring any immediate tax consequences. This exchange can take place either simultaneously or with a time delay, as outlined in Section 1031 of the IRS Code. By leveraging this strategy, individuals can defer capital gains tax that would typically be triggered by the sale of real estate.

A successfully executed 1031 Exchange empowers the taxpayer to utilize the entire proceeds from the property sale for the purchase of a new property, thereby postponing the payment of capital gains taxes.

Real estate owners can achieve various objectives through 1031 Exchanges, such as increased leverage, diversification, enhanced cash flow, geographic relocation, and/or property consolidation.

SEMO Exchange, LLC is excited to offer this service to our community!

1031 Title Exchange FAQs

Learn more about common terms and questions concerning a 1031 Title Exchange.
When is a 1031 Exchange applicable?
A 1031 Exchange is applicable when a property owner intends to sell any property that is not their primary residence or held for sale (and falls under the definition of like-kind property) and plans to purchase another like-kind property within 180 calendar days following the sale of the current property.
What is a like-kind property?
Like-kind property can include, but is not limited to, any of the following types of real property, provided it is held for investment: single-family rental, duplex, apartment, industrial commercial property or land.

For example, land can be exchanged for a single-family rental or a multi-family property for a commercial building. Properties can be exchanged anywhere within the United States.

Does a 1031 Exchange need to be simultaneous?
No – most 1031 Exchanges are delayed. Typically the property owner has 180 days between the sale of their current property and the closing of the replacement property. However, the property owner must identify the potential replacement property within 45 days from closing on the sale of the current property.

Resources

Sometimes it feels like title work is in a world of its own. That’s why we’ve put together a list of frequently asked questions with helpful answers and a glossary of words and phrases unique to the industry.