1031 Tax-Free Exchange

Tax-free exchanges offer a passage to greater wealth that is open to everyone in the United States, but is used only by those who know about this tool and how to use it!

Six Rules of 1031

1. Real Property. The old and new property must qualify as investment or business properties. If both pass the test than you can exchange nearly any type of real estate.
2. Identification period (45 days). You have 45 days from the close of your sale to list replacement properties you want to buy...no exceptions.
3. Exchange period (180 day). From the sale closing date you have 180 days to close on the purchase of the replacement real estate from the 45 day list.
4. Qualified Intermediary. Will handle the funds and all documents for the exchange. You cannot use a friend or family member or even your attorney or accountant.
5. Proper Title Holding. You must hold the title to the replacement property exactly as you did on the sold property.
6. Reinvestment Requirement. To defer all of the capital gains tax, you must reinvest into a property of equal or higher value form the proceeds of the sale.