Southwest Exchange Corporation specialized in arranging 1031 real estate transactions operating as a "qualified intermediary". A 1031 exchange is a tax deferred property exchange primarily used by investors of rental and commercial properties. Under the IRS rules, a person can sell an investment property and reinvest that money in a new, similar property of equal or greater value within 180 days and completely avoid paying any capital gains taxes. Sellers cannot touch the proceeds of the sale in between the sale of the old property and the purchase of the new property. By law the seller must deposit the money with an independent intermediary such as Southwest Exchange.