Section 1031 Exchanges

In addition to handling your traditional escrow closings, Pennington Title Company is also equipped to work with you on any of your IRC §1031 Exchange needs. An IRC §1031 Tax-Deferred Exchange represents a strategic method for acquiring or selling qualified property in exchange for “Like-Kind” properties within a specific time frame to defer capital gains taxes.

The Qualified Intermediary

It is necessary to have a Qualified Intermediary to hold the proceeds safely until needed as the IRS stipulates you cannot be in actual or constructive receipt of funds at any time during the exchange. Properly drafted intermediary paperwork is critical and defeats the problem of a taxable event in regard to the receiving the sale proceeds.

Pennington Title Company has acted as a Q.I. since 1986. We have been the only accredited member of the Federation of Exchange Accommodators in the State for over 10 years.

Additionally, our Vice President, Jan Kirch, is currently the only Certified Exchange Specialist (CES®) in South Dakota. For more information about her position, see this article in the April 2008 edition of The Real Estate Executive of Eastern Wyoming and South Dakota.

When broken down to its essence, there is nothing difficult about most exchanges. Sell, then buy, while rolling over your money with the proper paperwork. Pennington Title Company can assist you with your exchange wherever the real estate you are selling, purchasing, or exchanging is located. Our highly skilled staff delivers timely, knowledgeable service for transactions of any size and complexity. It’s the service you’re entitled to.22