Team Molzan - Holiday Realty

Before 1979, trading properties was at best complicated. Completing a tax deferred exchange meant investment properties had to be traded simultaneously. Unfortunately, this made exchanging cumbersome and risky, if not impossible.

The 1979 Starker decision in the U.S. 9th Circuit Court of Appeals enabled the non-simultaneous or "delayed" exchange to qualify for tax deferral. This gave the investors the time necessary to find desirable replacement properties by using an Intermediary.

Treasury Regulations effective June 10, 1991, validated the delayed exchange and simplified the exchange process. These Regulations which included the use of Qualified Intermediaries, were welcomed by real estate investors who were previously uncertain of the viability of a 1031 transaction.

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