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The regulations, court cases, and IRS rulings that apply to your exchange are ever-changing. It is important to choose a QI like The 1031 Exchange Experts that understands these laws, and carefully monitors new legal developments
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The IRS Rules for Exchanges... |
You will need to follow six primary rules for your exchange to meet stringent IRS regulations. |
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 Real Property Use.
Both your old and new properties must qualify as investment
or business use. If both properties pass this test, you can
exchange nearly any type of real estate.
Videos for Rules 2 & 3 Coming Soon!
 45 Day Identification Period. You have 45 days from the
closing of your sale to list the properties you may want
to buy. There are no exceptions to the deadline.
 180 Day Exchange Period. From the sale
closing date, you have 180 days to close on the purchase
of one or more properties from the 45-day list. Again, there
are no exceptions to this deadline.
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Nationwide,
Toll-Free: 866-694-0204 |
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WATCH the presentation
NOW!
or watch some now and some later |
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28 minutes |
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 Qualified
Intermediary (QI).
The IRS mandates that you use
a QI to prepare the legal documents for your
exchange. Because the QI must be independent,
it cannot be your friend, employee, broker, or
even your accountant or attorney. The QI also
holds your money, so that you do not have access
to it. |
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Videos for Rules 5 & 6
Coming Soon!
 Proper
title holding. You must purchase and take title
to your new property exactly
as you held title to your old property.
 Reinvestment
Requirement. To defer all of your capital gain tax, you must buy
a property equal or higher in value than the one you sold. Also, you must reinvest
all of the cash proceeds from your sale
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| Q: What
happens if you identify 3 properties within the 45 days, but do not close on any of them? |
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A: Dear Tony,
Once you have identified
the 3 properties within the 45 days, you must close
on 1 or more of those properties. This closing(s) must
take place by day 180 from the date of the sale of
the old property. If you don't close on any of them
within the 180 day deadline. that means the exchange
fails, and is now a taxable event to you. There are
no additional penalties assessed.
Sincerely,
The 1031 Exchange Experts |
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