By completing a proper 1031 exchange, you can essentially change the form of your investment without cashing out or recognizing any capital gains. Section 1031 property exchanges make it possible for real estate investors to sell one property and reinvest the proceeds in a new property.We are a national 1031 exchange qualified intermediary with 1031 Exchange New York offices throughout the state. 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. The trust was funded with the real estate acquired in the section 1031 exchange. To download this guide as a PDF, fill out the form below. Followed the strict rules under Section 1031.