Many states are now regulating 1031 exchange providers. Each of these states has different requirements, varying from state specific licenses to minimum levels of bonding and insurance to limitations on the types of accounts that are permitted. TVPX is compliant with all state requirements.
The State of Washington requires the following statement to be posted on our website:
Washington state law, rcw 19.310.040, requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or to hold all client funds in a qualified escrow account or qualified trust that requires your consent for withdrawals.
- All exchange funds must be deposited in a separately identified account using your taxpayer identification number.
- You must receive written notification of how your exchange funds have been deposited.
- Your exchange facilitator is required to provide you with written directions of how to independently verify the deposit of the exchange funds.
- Exchange facilitation services are not regulated by any agency of the state of Washington or of the United States government.
- It is your responsibility to determine that your exchange funds will be held in a safe manner.
TVPX can guide you through this process.
Our expertise is 1031 Exchanges. Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties.
If you would like to know what the requirements are in your state, please contact TVPX at +1 978.610.1234.