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| 5.
Does an exchange require finding someone to trade properties with?
It is very rare that an exchange actually happens between two parties who
want to trade properties. Working with a realtor and qualified intermediary,
it is simple to buy from and sell to unrelated parties. 6. How does the IRS define "like-kind" property? IRS Section 1031 defines "like-kind" as property held for investment or productive use. This does not include a taxpayer's primary residence or personal leisure place (such as a second home not used for rental income purposes). Any combination of types of "like-kind" properties is allowable in an exchange. 7. How late in the closing process can an exchange be performed? If title has not passed to the buyer and money has not yet been received, it is still possible to perform an exchange. 8. Can a title company hold money from a sale until replacement property is found? A title company can hold funds; however, there must be an exchange agreement in place between the taxpayer and a qualified intermediary at the time of the sale. The funds must never fall under the taxpayer's control if an exchange is to be successfully completed. MORE > > > |
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| EXCHANGES PERFORMED NATIONWIDE : 1 800 500 1031 : LOCAL OFFICES IN SANTA FE & TELLURIDE : INFO@A1031EXCHANGE.COM |
The information on this website is an educational resource only, and not intended
as legal, accounting, or tax advice of any kind.
It is recommended that you consult with your own attorney or tax advisor for
details before choosing to engage in a 1031 Exchange