What is a 1031 tax-deferred exchange?

1. Section 1031 of the Internal Revenue Code.

2. Dispose of property held for productive use in business, trade, and/or investment.

3. Acquire “like-kind” replacement property held for productive use in business, trade,

and or/investment.

4. Tax-deferring tool – Avoid paying unnecessary taxes.

Why should I exchange?

• DEFER TAXES: Use to acquire properties and build wealth.

• CONSOLIDATE: Trade several properties for one.

• DIVERSIFY: Trade one property for several.

• RELOCATE to another geographic region.

• INCREASE cash flow: Trade land for improved property.

• ELIMINATE property management headaches and co-ownership issues.

• IMPLEMENT an estate plan.

• MAXIMIZE your leverage.

Types of exchanges First American Exchange Company handles:

FORWARD EXCHANGES most common

REVERSE EXCHANGES purchasing before selling

BUILD-TO-SUIT/IMPROVEMENT CHANGE using exchange

funds to improve property within 180-day period

For more information, visit http://www.firstexchange.com