1031 exchange QIs
TD Exchange Company
TD Exchange Company LLC is a qualified intermediary affiliated with the Thomas Downing Law Firm at 4015 Executive Park Drive in Cincinnati, Ohio. Its business attorneys act as intermediary on 1031 like-kind exchanges for clients across the Midwest and the rest of the country, and the firm describes itself as serving the Northern Kentucky and Greater Cincinnati region.
The firm handles forward exchanges, in which it holds the proceeds from the relinquished property while the taxpayer identifies and closes on replacement property — the site describes a 180-day window from the relinquished closing — as well as reverse exchanges, where the replacement property is bought before the relinquished property is sold, and improvement exchanges, where exchange funds pay for improvements during the exchange period. It prepares the exchange documents and coordinates with the other parties through closing, from the initial consultation to the end of the exchange.
The exchange company sits alongside the law firm's other work: business formation, business transactions, commercial litigation, general counsel, real estate including land development, leasing, zoning and tenant-in-common structures, succession and estate planning, Ohio statutory agent service through TD Corporate Services and title services through Thomas Downing Title Services. The 1031 page names Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin among the states served, and says the firm has facilitated hundreds of exchanges.
The site states that its professionals are not accountants and do not advise on accounting issues or calculate prospective tax liability. It publishes no exchange fees and no detail on how exchange funds are held, so fund security arrangements and pricing should be raised before engaging.
Best for
Midwest investors who want their qualified intermediary and their transaction attorneys in one place, particularly on reverse or improvement exchanges that need heavier document work.
What they do
- Forward 1031 exchanges
- Reverse 1031 exchanges
- Improvement 1031 exchanges
- Exchange document preparation
- Coordination with closing agents
- Ohio statutory agent service
- Commercial and residential title services
- Real estate transaction counsel
Details
| Attribute | Value |
|---|---|
| Exchange types | Forward, Reverse, Improvement |
What stands out
- Says it has facilitated hundreds of 1031 exchanges.
- Handles forward, reverse and improvement exchanges.
- Affiliated with the Thomas Downing Law Firm at 4015 Executive Park Drive, Cincinnati.
- States its professionals are not accountants and do not advise on tax liability.
Common questions
- What is a 1031 exchange?
- A 1031 exchange, also known as a like-kind exchange, is a tax-deferred transaction that lets a real estate investor sell a property and reinvest the proceeds into another property of equal or greater value while deferring capital gains taxes.
- Is a qualified intermediary required for a 1031 exchange?
- Yes. A qualified intermediary holds the funds from the sale of the relinquished property, or title to the replacement property in a reverse exchange. If the taxpayer receives exchange funds, actually or constructively, those funds become boot and are fully taxable.
- What kinds of property qualify for a 1031 exchange?
- Most real estate held for investment or used in a trade or business qualifies, including residential rental properties, commercial properties, vacant land and certain leasehold interests. Personal property such as vehicles or a business generally does not.
- Can one exchange involve multiple properties?
- Yes. The rules allow the sale of multiple relinquished properties and the acquisition of multiple replacement properties, as long as certain criteria are met.