About 1031 Exchanges
A 1031 exchange is where a property is sold and another
property/properties is purchased and the federal income tax is deferred.
In order to qualify for a tax deferred exchange several criteria must be
met. Some of the criteria are as follows:
- The property being exchanged/sold must not be your personal
residence.
- The property must be an investment property; single family,
multi-unit residence, raw land, commercial, or other.
- A seller can sell a property and buy a different type of
property.
- A seller must use a qualified intermediary to handle the
transaction to ensure it meets the criteria of a 1031 exchange.
- The replacement property must be identified within 45 days from
sale of the original property .
- There is a maximum of 180 days to acquire the new property from
the sale of the original property.
- There is additional criteria and information which you can get
off my website at the favorite links page.
I will be happy to discuss the benefits of doing an exchange and how you
can benefit from this type of transaction.