1031 Exchanges offer real estate investors the opportunity to defer capital gain taxes on the sale of an asset by exchanging the property for a "like-kind" asset held by another investor. LoopNet's 1031 Exchange Center provides resources, current information and a variety of tools necessary for 1031 transactions.
When a broker adds or edits a for-sale property listing on LoopNet, he or she can request 1031 Exchange information from the participating Qualified Intermediaries. LoopNet's partners in the effort include Asset Preservation, Inc., a subsidiary of Stewart Title Company and Stewart Information Services Corp.; Investment Property Exchange Services, Inc., a subsidiary of Fidelity National Financial Inc.; and LandAmerica Exchange Company, a subsidiary of LandAmerica Financial Group.
The LoopNet marketplace currently includes more than $86 billion in properties for sale and 1.5 billion sf of properties for lease. LoopNet says more than 175,000 commercial real estate professionals and over 145 organizations utilize its services. In March of this year, LoopNet, Inc. announced a merger with competitor PropertyFirst.com Inc. that should be completed in June of this year.
Dennis De Andre, CEO of LoopNet tells GlobeSt that most people are unaware of the tax-deferred benefits offered in a 1031 exchange and estimates that tens of thousands of like-kind exchanges occur in the U.S. every year. "It's the same with certain types of IRA's, says De Andre. "When you sell property, you are required to pay a capital gains tax but if you exchange it or roll it into another property you only pay that tax when you make the final exit."
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