|1031 exchange vs reverse 1031 exchange||0.07||1||700||77|
If your market is hot, you may want to consider using a 1031 reverse exchange to eliminate the need to identify a replacement property within the 45-day deadline following the sale of your current property.What are the steps of a 1031 exchange?
3 Easy Steps for a 1031 Exchange: At closing, all proceeds are directed to a Zions Bank ® qualified trust account. Identify your replacement property within 45 days of the relinquished property sale. Acquire your replacement property within 180 days of the relinquished property sale, or the due date of the tax return, including extensions, for the year of the sale.What are the rules of a 1031 exchange?
One key requirement of the 1031 exchange rules is that both the purchase price must be equal to or greater that of the original property. For example, if you are selling a property for $2 million, you need to buy a property for $2 million or more to fully defer your capital gains taxes.What good is a 1031 exchange?
Key Takeaways A 1031 exchange is a swap of properties that are held for business or investment purposes. The properties being exchanged must be considered like-kind in the eyes of the IRS for capital gains taxes to be deferred. If used correctly, there is no limit on how many times or how frequently you can do 1031 exchanges. More items...