Section 1031 of the Internal Revenue Code of 1986, enables investors to take advantage of a tremendous vehicle to build wealth and save on tax obligations. By completing a 1031 exchange, the investor can dispose of investment property ("relinquished property"), and use all of the equity from the sale to acquire replacement ("replacement property"), without having to pay taxes on the gain from the sale of the relinquished property.

The IRS requires that any taxpayer taking advantage of Section 1031 retain the services of an independent "Qualified Intermediary" to orchestrate the exchange. The retention of a Qualified Intermediary, such as Capital 1031, must occur before the closing of the relinquished property.