1031 Tax Deferred Savings

1031 Tax Deferred Savings

Are you selling a property and want to buy another?

1031 Tax Deferred Savings

1031

1031 Tax Deferred Savings is a quiet  enjoyment of your investment.

1031 Tax Deferred Savings

This is True for Both Types of Exchanges:

Old and New properties must both be held for investment or for business:

  • Must have written exchange agreement with Qualified Intermediary (QI)
  • New property must be equal or up in Fair Market Value (FMV)
  • Any cash out is taxable
  • All real estate is “like-kind” to all other real estate
  • Person on title of Old must be person on title to New
  • OK to exchange multiple Old properties for New property or visa versa (fractional interests are OK)
  • Owner financing handled outside of exchange
  • Cannot buy New property from a “related” party
  • Basis of Old carried forward into New, with adjustments

 FORWARD EXCHANGE MUST:

    • Not receive funds from sale
    • ID New property, in writing, within 45 days of close of Old property
    • Buy New property within 180 days

Please contact your tax advisor to see if 1031 Tax Deferred Savings is the right strategy for you

To learn more about 1031 Tax Deferred Savings, try checking out: http://www.realtor.org/field-guides/field-guide-to-1031-exchanges