As 1031 CORP. celebrates its 35th anniversary, it is an ideal time to reflect on the enduring economic importance of Internal Revenue Code Section 1031 (“IRC §1031”) and the role like-kind exchanges play in strengthening the U.S. economy. For more than a century, like-kind exchanges have encouraged reinvestment in business and investment use real property, keeping capital in motion, supporting jobs, and driving economic growth. For 35 years, 1031 CORP. has helped real estate investors and business owners pursue new opportunities with confidence, clarity, and peace of mind.
Founded in 1991, alongside the modern evolution of the 1031 exchange industry, 1031 CORP. has built its reputation on a restless pursuit of opportunities for clients, a deeply client-focused exchange experience, and an unwavering commitment to transparency and security of exchange funds—values that continue to differentiate the company in an increasingly complex marketplace.
What Is an IRC §1031 Like-Kind Exchange?
An IRC §1031 like-kind exchange allows owners of real estate held for investment or business purposes to defer capital gains taxes when selling property and reinvesting the proceeds into other like-kind real estate. By preserving equity that would otherwise be lost to immediate taxation, 1031 exchanges enable investors to reinvest more equity into replacement properties supporting continued growth and the growth of their real estate portfolio with pre-tax dollars.
By reducing friction in the real estate marketplace, IRC §1031 encourages investors to reinvest, reposition assets, and respond to changing market conditions rather than remain locked into properties that no longer meet their strategic goals.
The Significance of the 1991 Final Regulations
A pivotal milestone in the modern use of 1031 like-kind exchanges came with the issuance of the Treasury Department’s Final Regulations in 1991. These regulations formally recognized the role of the Qualified Intermediary (QI) and established a clear framework for deferred exchanges—providing structure and consistency that helped expand the use of 1031 exchanges nationwide.
1031 CORP. was founded in 1991, the same year these regulations took effect. Over the past 35 years, the company has grown alongside the industry, helping investors adapt to new markets, new property types, and new opportunities while maintaining a steadfast focus on client experience and trust.
How IRC §1031 Benefits the U.S. Economy
35 Years of Growth: A Firsthand Perspective
Over the past 35 years, Margo McDonnell and the team at 1031 CORP. have witnessed firsthand the steady expansion and growing use of 1031 exchanges, particularly on the East Coast. What began in the early 1990s as a specialized planning tool has evolved into a widely used strategy for investors ranging from individual property owners to sophisticated real estate portfolios.
This growth reflects the durability of Section 1031 and its essential role in helping investors adapt, pursue opportunity, and remain active participants in real estate ownership and the U.S. economy.
Transparency, Security, and Peace of Mind
Beyond economic impact, trust and security are foundational to a successful 1031 exchange. 1031 CORP. has long set itself apart through industry-leading safeguards designed to provide clients with confidence throughout the exchange process.
Exchange funds are held in segregated, client-specific accounts titled for the benefit of the client, with clients able to view their account activity directly through the bank’s website. In addition, clients receive mailed monthly statements directly from the bank, reinforcing transparency and providing an added layer of reassurance. This commitment to openness reflects 1031 CORP.’s belief that peace of mind is just as important as performance.
A Proven Engine of Economic Growth
The economic benefits of like-kind exchanges extend far beyond individual transactions. The reinvestment activity it supports generates significant tax revenue through income taxes, property taxes, transfer taxes, and sales taxes, while sustaining jobs and economic momentum across industries.
As the U.S. economy continues to evolve, Section 1031 remains a proven driver of reinvestment, growth, and opportunity. For 35 year and counting, 1031 CORP. has been proud to help investors pursue what’s next, supporting strong markets, vibrant communities, and a resilient U.S. economy.
Ready to start your exchange?
Contact our experienced exchange team today and discover why investors across the country trust 1031 CORP. to protect their equity, defer their taxes, and grow their portfolios. Call 800.828.1031 or contact us online.