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Tag Archives: replacement

How long do I have to wait before I can 1031 Exchange my property?

Tuesday, December 28, 2010

We know both the Relinquished Property and the Replacement Property must be held for use in a trade or business or for investment qualify for 1031 Exchange. But we don’t know exactly how long. The statute is silent on this issue.  There is no safe holding period for property to automatically qualify. IRS has ruled [...]

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Is the 1031 Exchange property I’m buying impacted by the depreciation of the property I’m selling?

Monday, December 27, 2010

Depreciation taken or method used on the relinquished property does not carry over to the replacement property in a 1031 Exchange. You figure the substituted basis of the replacement property, allocate the basis between land and depreciable assets and start over following current depreciation rules for the types of depreciable assets you acquire. Your CPA can [...]

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