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Tag Archives: IRS

Before I 1031 Exchange a property, can I borrow against it?

Sunday, January 2, 2011

An interesting concept, this is called anticipatory mortgaging and has some benefits for a 1031 Exchange. What if you were to refinance your Relinquished Property prior to the exchange to get cash and then raise the mortgage to be assumed or paid off by the buyer? Remember these things: Borrowing money on your property is not [...]

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Is there a penalty if I switch my 1031 Exchange identified properties after the 45 day period?

Thursday, December 23, 2010

The penalty is that your 1031 Exchange would collapse.  The IRS has said that you have 45 days to identify your replacement properties. Soon as that 45 day deadline is reached, your replacements are “locked-in”, which means you cannot change them. The good news is that you do have the option of NOT closing sale [...]

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