1031 Exchange Information
What is a 1031 Exchange?
A 1031 Exchange refers to a real estate transaction where the property owner defers relevant taxes until a future date. A typical transaction involves a property owner trading a property for another "like kind" replacement property.
What are the benefits of a 1031 Exchange?
A 1031 exchange enables the property owner to defer potential taxes associated with the sale of real property. By deferring the taxes the owner has more money available to invest and can afford a more expensive property then otherwise would be affordable.
Is there a time limit to complete the 1031 Exchange?
Yes, the time limit is 180 days after the date the property owner completed the transfer of the property and entered into the 1031 exchange, or the due date of the tax return for the year in which the property was sold.
If you are considering a 1031 exchange, we recommend reviewing your options with a qualified tax accountant or attorney. Our Agents are well versed in the 1031 exchange and will be happy to assist you with identifying replacement properties.
Use this link to find more detailed information about a 1031 exchange.