1031 Exchange Best Practices

If you own an investment property and are thinking about selling it and buying another property, you should know about the 1031 tax-deferred exchange. This is a procedure that allows the owner of investment property to sell it and buy like-kind property while deferring capital gains tax.

When to consider 1031 Exchange :

  • Deffer Capital gain tax payments 
  • Consolidate Real Estate Assets
  • Diversify Investment for improved ROI
  • Reset Depreciation clock 
  • Managed Real Estate Investments vs Self Managed
Six most important Things to Know About 1031 Exchanges

  1. Real Property Use
  2. 45 Day Identification Period
  3. 180 Day Exchange Period
  4. Qualified Intermediary (QI)
  5. Proper Title Holding
  6. Reinvestment Requirement

 

Note – IRS Section 1031 rules are NON negotiable. Having trained, certified and experienced 1031 exchange agent  on your side is key to avoid any miss steps. One mistake may jeopardize entire benefits of 1031 Exchange!

 

To Learn more about 1031 Exchange please contact Jayanta Samanta at 510 928-4823