Welcome to Security Plus Exchange!  We will accommodate your 1031 tax deferred exchange. 

What is a 1031 exchange?  

• Under the Internal Revenue Code Section 1031, a owner of property can exchange or trade property for  like-kind property without recognizing a taxable gain at the time of the sale.  This means the owner will not pay taxes at the time of the sale so long as proper procedures are followed to qualify as a like-kind exchange. 

What does like-kind mean?

• Like-kind, basically means similar.  One type of property for a similar type.  Real Estate is a common type of property exchange and Security Plus Exchange specializes in this type of exchange.  A property owner may exchange one type of investment real estate for another.  Example:  A property owner sells a piece of real estate used in farming and uses the funds to purchases an apartment complex.

Key philosophy of a 1031 Exchange

• Before section 1031, a sale of property triggered a taxable gain because the difference between the original purchase price and the sales price was considered a gain or the profit.  The seller of the property received an economic benefit from the sale and therefore was required to pay tax on the gain or profit.  The new philosophy of an exchange considers an exchange as a non event as far as a taxable gain is concerned.  Reason, the owner does not effectively benefit from the sale in form, the gain has not been realized and therefore a tax liability is not incurred.

Who are we?

• Security plus exchange was started by Randy Childs.  Randy is an experienced Exchange Specialist.  He has performed numerous exchanges since 1998.  He was one of the first to begin performing 1031 tax exchanges.