1031 Exchange Realtor

1031 Exchange Buyers/Sellers – We Have Your Back!

We often come across clients who are playing with the idea of a 1031 exchange to save them from getting taxed when selling an investment property and looking to purchase another. It is important to have all the facts when deciding whether or not to use the power of the 1031 exchange.

A 1031 exchange is the swap of properties that are held for business or investment purposes, and if you meet the property criteria you will either have no tax or limited tax due on the exchange.

As Realtors we have a lot of experience with 1031 exchange clients and understand that time is not a luxury you have! (The government literally gives you a deadline)

The 45-Day Rule

Once the sale of your property occurs you will have 45 days to identify a replacement property. You can designate up to three properties but must eventually close on one of them.

The 180-Day Rule

After your property has sold you have 180 days to close on a new property, this runs concurrently with the 45-day rule.

Can I 1031 Exchange my Vacation Home?

Are you thinking of purchasing an investment property that will someday become your retirement home? You can use a 1031 exchange for this process if the purchase is of like-kind property in the eyes of the IRS. If you are selling a rental property and buying a future retirement home, you must rent the property out for a set amount of time before it can become your primary residence. 

When choosing a real estate agent to help you with your 1031 exchange you should take into consideration how much experience they have had with the process. Keeping track of dates, understanding the timeline, and helping you understand YOUR buying and selling power should be expectations that are made clear from the jump.