1031 exchange QIs
IPX1031
IPX1031 (Investment Property Exchange Services, Inc.) is a national qualified intermediary for Section 1031 like-kind exchanges. It prepares the exchange documentation, holds the exchange proceeds, and coordinates the deadlines, working through a nationwide network of regional offices and specialized exchange divisions.
It handles delayed (forward) exchanges, reverse exchanges, improvement or build-to-suit exchanges, and combinations of the two, with a National Reverse and Improvement Exchange Division for the parking structures those require. In a reverse or improvement exchange an exchange accommodation titleholder takes title to the relinquished or replacement property while the transaction or construction is completed. Clients have direct access to full-time exchange professionals, one-third of whom the company says are attorneys, and the site publishes checklists, FAQs, brochures, videos, and a capital gain estimator.
The parent company is Fidelity National Financial (NYSE: FNF), a Fortune 500 company, and IPX1031 points to that backing along with its exchange fund safeguards. It says it has provided qualified intermediary services for nearly 40 years and has facilitated hundreds of thousands of exchanges. Fit Small Business has named it Best Overall 1031 Exchange Company for five consecutive years, 2022 through 2026.
The company notes that qualified intermediaries are not federally regulated or licensed in the manner of banks, which makes it worth asking any intermediary, including this one, exactly how exchange funds are held and protected, and what the fee will be for the structure involved.
Best for
Investment and commercial property owners anywhere in the United States who want a qualified intermediary backed by a publicly traded parent, and especially those needing reverse or improvement exchanges that require a parking structure.
What they do
- Delayed (forward) 1031 exchanges
- Reverse 1031 exchanges
- Improvement and build-to-suit exchanges
- Combination exchanges
- Exchange accommodation titleholder (parking) structures
- Capital gain estimation and exchange education materials
Details
| Attribute | Value |
|---|---|
| Ownership | Subsidiary |
| Exchange types | Forward, Reverse, Improvement |
| Fund security | Segregated accounts, Fidelity bond, E&O |
| Fee range | Quote only |
What stands out
- Parent company is Fidelity National Financial (NYSE: FNF), a Fortune 500 company.
- Named Best Overall 1031 Exchange Company by Fit Small Business for five consecutive years, 2022 through 2026.
- Says one-third of its full-time exchange staff are attorneys.
- Operates a National Reverse and Improvement Exchange Division for parking transactions.
- States it has provided qualified intermediary services for nearly 40 years.
Common questions
- What are the deadlines in a 1031 exchange?
- Two apply. Within 45 calendar days of transferring the first relinquished property the exchanger must identify the replacement property. The exchanger must then receive the replacement property within the earlier of 180 calendar days after that transfer or the due date, including extensions, of the tax return for the year of the transfer. Neither period can be extended for weekends or holidays, though a disaster extension of up to 120 days may apply under Rev. Proc. 2007-56.
- What is a reverse 1031 exchange?
- It is the opposite of a delayed exchange: the replacement property is acquired before the current property is sold. Because IRS rules do not let the exchanger hold both, an exchange accommodation titleholder takes title to either the old or the new property until the exchange is completed. The structure is more complex than a forward exchange but can preserve the deferral when the replacement property has to be secured first.
- What is an improvement exchange?
- Also called a build-to-suit or construction exchange, it lets exchange proceeds pay for improvements to the replacement property. IRS regulations prohibit using exchange funds to improve property the exchanger already owns, so an exchange accommodation titleholder takes title while the work is done and then transfers the property to the exchanger at the higher improved value.