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Buyers: Are you thinking about a 1031 Exchange?
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A 1031 Exchange is a beneficial program but..you'll need to make sure you are following all the regulations to fully benefit.
Here are the six main rules you will need to know.
- Real Property - Both the new and old property must be an investment or qualified for business use. Once this has been verified many restrictions are lifted.
- 45 Days - The day you sell your home begins the clock. Only a maximum 45 days
 are allowed to pass before a list of potential properties is due. There aren't any exceptions.
- 180 Days - This is slightly different from 45 Days. The 180 Day Exchange Rule allows 180 days to close on one or more of the listed property(ies).
- Qualified Intermediary (QI) The IRS requires that a QI prepares the entire packet of legal documents necessary for the exchange. The QI will provide a safe haven for all the paperwork and funds. The QI must not have any pre-existing relationship with the client.
- Proper title holding. The new property must be a duplicate of the first property title holding.
- Reinvestment Requirement. To avoid paying any capital gain tax, the new property must appraise higher or at least equal to the property being sold.
For more information on the IRS requirements please visit the IRS website for more information. We are happy to translate any 1031 information for you. Just let us know how we can help. |
1031 Articles
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Do you have a mix of relatives involved in your 1031 Exchange? Please request the following article that helps explain a 1031 Exchange with Relatives.
Please be assured that Jim Wilson and his team will always protect your privacy. Any information you share with Jim or his team will always be private and never sold or make public. We value your privacy.
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Did You Know?
Annapolis was known as the Athens of America during the 17th century and at one time was the capital of the United States.
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Jim Wilson
Realtor, BS, MS, C2C, ePro
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We know most of our visitors simply wish to gather information, and hope when you are ready to discuss specific questions, you will contact us via my cell phone or email. We guarantee that all of your personal information ALWAYS remains confidential and proprietary. Its never shared or sold to any source whatsoever.
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