1031 exchanges take their name from section 1031 of the Internal Revenue Code.  These exchanges provide investors with one of the best tax strategies for keeping value in a portfolio, by deferring the recognition of the capital gains that would otherwise be incurred on the sale of investment property.  The investor can use all of the equity from the sale of the relinquished property to purchase replacement property.  To qualify as an exchange the relinquished and replacement properties must be qualified “like kind” properties and the transaction must be structured as an exchange.  If your tax advisor recommends a 1031 exchange of your investment property, using Chippewa County Abstract   as the “Qualified Intermediary”, and will provide the investor with the necessary reciprocal transfer of properties and the “Safe Harbor” protection against actual and constructive receipt of exchange funds as required by the tax code.  For complex exchange transactions, we also offer the security and expertise of our national exchange accomodator Investment Properties Exchange Services, Inc. http://www.ipx1031.com   For additional information about exchanges, see our consumer information area.