Escrow Agencies/1031 Exchange

A 1031 exchange takes place when a property held for business or investment purposes is sold and swapped for a new property that is used for the same purpose allowing the seller to defer capital gains taxes. The funds for this exchange must be held in escrow by a qualified escrow agency, or the proceeds will become taxable. The Securities Bureau is charged with bringing escrow agencies in connection with 1031 exchanges into compliance with the Idaho Escrow Act.