In a 1031 Exchange the net proceeds you make from the sale of a property must be held by a qualified 3rd party before they are allocated to the next identified property. The role of a Las Vegas qualified intermediary (QI) is to securely hold those funds.
Briefly About 1031 Exchanges
(as explained by The Federation of Exchange Accommodators (FEA): http://www.1031.org/about1031/index.htm)
If you are looking to do an exchange on a Las Vegas property you will want to have experienced agents helping you with the purchase or sale and a reputable QI to handle the exchange. Give us a call so we can help you get started.
In a typical transaction, the property owner is taxed on any gain realized from the sale. However, through a Section 1031 Exchange, the tax on the gain is deferred until some future date.
Section 1031 of the Internal Revenue Code provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business, or for investment. A tax-deferred exchange is a method by which a property owner trades one or more relinquished properties for one or more replacement properties of "like-kind", while deferring the payment of federal income taxes and some state taxes on the transaction...