1031 Exchange in Florida: Rules, Requirements, and the Best Companies to Use

Last updated on July 23rd, 2021 at 12:53 pm

Florida’s 1031 exchange rules and regulations | Best 1031 exchange companies in Florida | Do I need to use a 1031 exchange company near me?

Investors find Florida’s red-hot real estate irresistible. And many of those investors are using Florida 1031 exchanges to protect their profits from capital gains taxes.

It’s a market fueled by Florida’s rock-solid economy, its growing population, and its business-friendly environment. Forbes, for instance, ranks Florida as the fifth-best state to do business in. 

Florida also has the third-highest population among U.S. states, and it’s gaining more than 900 residents per day. Florida’s population will hit nearly 26 million by 2030, according to the Florida Chamber of Commerce.

Combine that population growth with a job market that ranks near the top in terms of innovation, and you can see why Florida’s GDP has increased more than 50% over the past decade, to $1.1 trillion.

📈 1031 exchange trends
According to findings in a July 2020 report by the National Association of Realtors (NAR):
  • Since 2016, 12% of all sales transactions nationwide have been 1031 exchanges. 
  • 61% of realtors surveyed have handled at least one 1031 exchange transaction in the past five years.
  • 1031 exchanges are becoming more popular with small investors. In the 2015 NAR report, 81% of exchange properties were held by small investors; in the 2020 report, that figure rose to 84%. 

Florida’s 1031 exchange rules and regulations 

As you might expect from a state with no state income tax and a famously business-friendly regulatory environment, Florida hasn’t imposed any state regulations on 1031 exchanges. Investors executing Florida 1031 exchanges don’t have to worry about obscure, state-level rules threatening their tax deferral benefits.

In fact, Florida doesn’t regulate its 1031 exchange industry, which means anyone can get into the business with little or no training. That makes it even more important to find an experienced, qualified expert for your Florida 1031 exchange.

Contact us today for a free consultation with one of our 1031 exchange experts. They’ll listen to your needs, advise you on the best path forward, and help you reach your investment goals!

🏠 1031 exchange basics
Thinking of doing a 1031 exchange? Read our comprehensive guides on foundational topics, including:

The 5 best 1031 exchange companies in Florida

We analyzed Florida’s 1031 exchange providers and selected the five best. This chart provides the basics at a glance, while below you’ll find individual detailed profiles for each company.

1031 Exchange ConnectionAtlas 1031Exchange Resource Group (ERG)First American Exchange Company (First Am)IPX 1031
Year established 20032007200719901988
Member of the Federation of Exchange Accommodators?
Local offices
Company size 2 employeesn/a6 employees100+ employees100+ employees
Cost of deferred 1031 exchange n/a$850$850+$1,000$1,000
Cost of a reverse 1031 exchange n/a$5,125+ $4,000+$10,000-15,000, plus fees$6,000+

IPX 1031

IPX 1031 maintains two offices in Florida, and has a robust national presence. The company features a large, experienced staff of more than 100 employees, and it specializes in reverse and improvement exchanges. 

Year established: 1988

Locations: Jacksonville and Miami, and nationwide

Website: https://www.ipx1031.com/

Leadership: John Wunderlich, President (10 years)

Member of the Federation of Exchange Accommodators?ℹ️ Yes

Rating: A+ on Better Business Bureau

Company size: 100+

Staff strengths: IPX 1031 employees typically have significant commercial real estate and legal experience.

Costs: Deferred 1031 exchange: $1,000+; reverse 1031 exchange: $6,000+

Is the client’s money separated or commingled with others? Separated

Bonded and insured? Yes. $100 million fidelity bond, and $30 million in errors and omissions coverage

Expertise: IPX 1031 features an independent division that specializes in reverse and improvement exchanges.

Atlas 1031

Andrew Gustafson leads Florida-based Atlas 1031, which offers special expertise in international 1031 exchanges.

Year established: 2007

Locations: Naples, FL, and Orlando

Website: https://atlas1031.com/

Leadership: Andrew Gustafson, President (14 years)

Member of the Federation of Exchange Accommodators?ℹ️ Yes

Rating: A+ on Better Business Bureau

Company size: n/a

Staff strengths: Atlas 1031 has an advisory board composed of CPAs, attorneys, and title companies who can weigh in on clients’ 1031 exchanges.

Costs: Deferred 1031 exchange: $850+; reverse 1031 exchange: $5,125+

Is the client’s money separated or commingled with others? Separated

Bonded and insured? Yes. Errors and omissions insurance policy of $250,000 per occurrence, fidelity bond of $1 million+

Expertise: In addition to the standard deferred and reverse  1031 exchange types, Atlas also will perform less common leasehold 1031, improvement 1031, and international 1031 exchanges.

Exchange Resource Group 

Co-founded by a former real estate judge, the Exchange Resource Group (ERG) maintains offices in Florida and two other states. With ERG, Florida investors can take advantage of reasonable fees.

Year established: 2007

Locations: Florida, Colorado, and Texas

Website: https://www.erg1031.com/

Leadership: Drew McCabe, President (14 years)

Member of the Federation of Exchange Accommodators?ℹ️ Yes

Rating: 5/5 stars on Birdeye (12 reviews)

Company size: Six employees

Staff strengths: Co-founder Dan McCabe has experience as a judge in real estate law. The team features additional legal and real estate expertise.

Costs: Deferred 1031 exchange: $850+; reverse 1031 exchange: $4,000+

Is the client’s money separated or commingled with others? ERG keeps client money separated in individual segregated dual signatory accounts in an FDIC-chartered commercial bank, so the funds are fully FDIC-insured.

Bonded and insured? ERG has errors and omissions coverage

Expertise: ERG offers delayed, construction, and reverse 1031 exchanges.

1031 Exchange Connection

Year established: 2003

Location: Bonita Springs, FL

Website: https://www.1031connection.com/

Leadership: Nace Cohen, Founder and CPA (18 years)

Member of the Federation of Exchange Accommodators?ℹ️ Yes

Reviews: n/a

Company size: Two

Staff strengths: One of 1031 Exchange Connection’s two team members is a CPA with legal experience.

Costs: n/a

Is the client’s money separated or commingled with others? Separated

Bonded and insured? Yes. $1 million in professional liability insurance, and $1 million (per occurrence) fidelity bond

Expertise: 1031 Exchange Connection has substantial experience with international investors and international 1031 exchanges.

First American Exchange Company 

As a subsidiary of one of the largest title companies in the U.S. (First American Title), First American Exchange Company (First Am) has plenty of capital and industry clout. It operates across the U.S. but maintains a Florida headquarters in Jacksonville. First Am has an attorney in every office, so its clients are also well-advised from a legal standpoint.

Year established: 1990

Locations: Jacksonville, FL, and nationwide

Website: https://www.firstexchange.com/

Leadership: Carmine DiFulvio, Senior VP (15 years)

Member of the Federation of Exchange Accommodators?ℹ️ Yes

Rating: A+ on Better Business Bureau

Company size: 100+

Staff strengths: First Am has attorneys on staff in all offices nationwide, with CPAs often available.

Costs: Deferred 1031 exchange: $1,000; reverse 1031 exchange: $10,000-$15,000, plus fees

Is the client’s money separated or commingled with others? Separated

Bonded and insured? Yes. $20 million fidelity bond, $10 million errors and omissions insurance coverage

Expertise: First American Exchange Company is qualified to perform all types of exchanges, including deferred, reverse, improvement, and simultaneous 1031 exchanges.

Do I need to use a 1031 exchange company near me?

For Miami-based investors, using 1031 exchange qualified intermediary (QI) located in Miami is convenient, but it’s not required.

QIs in Sarasota, Naples, or even Key West are equally qualified to do the job — as are those based out-of-state.

This is especially true in Florida, where no state-specific 1031 exchange laws exist. A QI in New York, Washington, or California could do the job.

Still, certain intangible benefits come from working with a local QI — and there are drawbacks, too. Let’s look at some of the pros and cons of working with a local QI or a national QI. 

Using a qualified intermediary near you for a Florida 1031 exchange

✅ Pros❌ Cons
Local QIs usually have a network of reputable local providers to help with your 1031 exchangeSmaller companies may charge higher fees to make up for their lower volume
Familiarity with a local market can mean a faster, easier saleLocal QIs may not have the experience to breadth deal with unusual problems that can arise in a 1031 exchange
If you value chemistry and meeting in-person, a local QI can likely offer a stronger connectionIf you’re planning on exchanging properties outside of Florida, the QI may not be familiar with that state's regulations

Using an out-of-state qualified intermediary for a 1031 exchange in Florida

✅ Pros❌ Cons
Investors exchanging across multiple states may find it more convenient to work with a national companyNational or regional QIs may have large client lists, which can translate to less time to devote to individual clients
Large national companies generally have vast institutional knowledge they can tap into in the event your 1031 exchange runs into problemsA national QI may not be familiar with your local market, which can affect your sale price or maybe even tie up your sale past the 180-day deadline
Larger, high-volume companies are often able to charge lower fees National QIs won’t probably have a robust network of local providers

Ready to protect your profits and unlock significant tax-deferral benefits with a 1031 exchange? 

Contact us today, and we’ll put you in touch with one of our 1031 exchange experts for a free consultation! They’ll answer your questions, map out your best path forward, and make sure your Florida 1031 exchange gets off to a great start.

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