When you sell a property, there can be significant tax advantages to using a 1031 Exchange and rolling your profit in the property into your next property or properties. Instead of selling your property, paying taxes on the proceeds and then reinvesting the net (after tax) profit, a 1031 Exchange allows you to invest the full proceeds from the sale (before taxes) and defer your taxes until a later sale.
A 1031 Exchange requires that the proceeds from the sale be held by a third party intermediary, so you will need to decide you’re doing a 1031 Exchange in advance.
How To Find A Good 1031 Exchange Intermediary
Sample Information On 1031 Exchange Companies In Northern Colorado
I recently asked two Title Companies I work with for their recommendations for an intermediary to do a 1031 Exchange. They recommended IPX and API. Here are flyers from each.