To engage in a 1031 exchange, real estate investors in Virginia must meet certain criteria. Deferred exchange is a way for property owners to trade one property for another without having to pay any federal income taxes on the transaction.You must report the exchange to the IRS on Form 8824. With your final statement, we will send our workbook explaining how to fill out your Form 8824 properly. Form 8824 is used to report the exchange and is included in the publication. A 1031 Exchange Intermediary. Towne 1031 Exchange, LLC, headquartered in Norfolk, VA, can act as qualified intermediary for 1031 exchanges nationwide. Providing Virginia investors with 1031 Exchange replacement properties guidance, FAQ, rules and 1031 Exchange listings. Com, or fill out the form and we'll get in touch immediately.