CapServe Exchange, L.L.C.
Federal and state capital gain taxes take a huge bite out of the proceeds resulting from the sale of property that has increased in value or been depreciated
for tax purposes. A properly structured Section 1031 exchange transaction as dictated by the Internal Revenue Service can join together the sale of an
existing property and the purchase of a new property, resulting in deferment of substantial capital gain taxes. Depending on the circumstances, if a company
or individual sells property and incurs long term state and federal capital gains taxes, that seller’s replacement investmetnt  may need to appreciate as much
as 25% in value – just to attain the present value of the sold property prior to sale.

The IRS spells out in detail the rules and procedure for converting a sale and purchase type transaction into an exchange. One of the most important
requirements is that the individual or company intending to execute an exchange, or the “exchangor”, must utilize a “safe harbor” as defined by the IRS to
hold proceeds while the exchange is in progress. Generally, this is accomplished by using a “qualified intermediary”. The qualified intermediary should not
replace or co-opt any of the services that are traditionally provided by attorneys, accountants, brokers and other advisers. Instead, there should be a clear
line between the work of the intermediary and any other traditional professional service provider. At the same time, it is vital that the intermediary be
experienced and competent to coordinate and work knowledgeably with all clients and professionals involved in a 1031 Exchange.

Capserve Exchange is a qualified intermediary that provides a safe harbor for exchange clients. Organized by attorneys with extensive experience in real
estate development, investment and management, Capserve is uniquely positioned to structure and execute a smooth and perfectly safe exchange. In order
to maintain “arms length” relationships with exchange clients, Capserve’s officers do not offer legal, accounting or brokerage services to its clients, nor do
they provide title insurance services. Moreover, Capserve’s officers do not solicit or seek to offer services beyond the activities of a qualified intermediary.
This is an important distinction from some intermediaries that provide intermediary services plus related professional services including legal, accounting
and brokerage services. Our arrangement provides a measure of protection to both the professional and to their client.

Capserve Exchange is able to focus on a single purpose— providing best possible service and results for tax-free exchangers and their professional service
providers. The founders of Capserve recognize that successful developers, businesses and investors—as well as the professionals that represent them—
prefer to concentrate on their primary responsibilities, rather than divert valuable time and resources on the burdensome task of personally handling the
requisite steps of a tax-free exchange.
Call:  (334) 263-0016   Fax: (334) 263-0056
105 Tallapoosa Street  - Suite 104  
Montgomery, Alabama  36104