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Monthly Archives: January 2011

What is the 1031 Exchange Period?

Monday, January 31, 2011

The 1031 Exchange period is considered the time AFTER you close sale on your property until you purchase your last Identified Replacement Property. This period of time can be no longer than 180 days and you are not able to access any of your 1031 Exchange proceeds during this time for any other reason than [...]

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Who regulates 1031 Exchange Qualified Intermediaries?

Monday, January 31, 2011

There is no federal body that regulates 1031 Exchange Qualified Intermediaries. Many of the states are requiring licensing in their state. Washington State requires that 1031 Exchange Qualified Intermediaries are managed by either a CPA or an Attorney. The Federation of Exchange Accommodators is a national organization of Exchange Professionals who have tried to put [...]

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In my 1031 Exchange, do I have to purchase 3 replacement properties?

Monday, January 31, 2011

You have three purchasing options when it comes to your 1031 Exchange Replacement Properties. By far the most popular option is the 3 property rule, which means that you may purchase up to 3 replacement properties without regard to the fair market value of these properties. Naturally, if you purchase 3 properties that are valued [...]

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What qualifies as Real Estate held for investment?

Sunday, January 30, 2011

Real Estate held for investment is one of the 4 classifications of Real Estate that the IRS has said qualifies for 1031 Exchange. Typically, this almost always land. Investment real estate is a capital asset (IRC Section 1221). It’s property held primarily for appreciation of value due to location, passage of time and other factors [...]

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Can I 1031 exchange the water rights to my property?

Sunday, January 30, 2011

Depends on many factors. The best place to start is to review our 1031 Exchange Knowledge Base regarding Water rights and 1031 Exchange. Here is an excerpt: “Donald, Gary, and Deborah Wiechen were partners in a partnership, Wiechens Properties Limited Partnership, that owned land in an irrigation district. The partnership obtained the right to receive Colorado [...]

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How long do you have to wait to do a 1031 Exchange on a property?

Sunday, January 30, 2011

If you are thinking about a 1031 Exchange, you should really research the 4 classifications of Real Estate as it is defined by the IRS. We have a great article about it, located here. To answer you question, you need to figure out what classification of property you have. Since only property that is held [...]

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How do I beat the 45 day deadline rule in a 1031 Exchange?

Saturday, January 29, 2011

The best and ONLY way to “beat” the IRS 45-day Identification Deadline is to Identify your 1031 Exchange Replacement Properties within 45 days of closing sale on the property you are selling. In other words, any attempts to beat this rule other than following it will force your 1031 Exchange to collapse and you will [...]

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In a 1031 Exchange, what type of property can farm land be traded for?

Saturday, January 29, 2011

All land qualifies for 1031 Exchange as it is classified by the IRS as Real Estate Held for Investment Purposes. Farm Land falls under this category. A 1031 Exchange must be like-kind and according to the IRS Like-kind Real Estate is Real Estate Held for Investment AND Real Estate held for a business or trade. [...]

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Does my condo qualify for 1031 Exchange?

Saturday, January 29, 2011

Your condo could qualify for 1031 Exchange if you rented it out. This is from our 1031 Exchange Knowledge Base: A condominium is treated by the IRS as a primary residence if occupied by you as your primary residence. You receive legal title in fee simple to a unit in the multi-unit building. Also, you get [...]

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Does 1031 Exchange apply to selling my primary house?

Friday, January 28, 2011

There are 4 classifications  of Real Estate according to the IRS. The two that qualify for 1031 Exchange are real estate held for investment, usually land AND real estate held for use as a business, usually some sort of rental property. Your personal residence or primary residence or your second home are NOT qualified for [...]

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