Posts from January 22nd, 2024

January 22, 2024

A 1031 Exchange, named after Section 1031 of the Internal Revenue Code in the United States, allows for the exchange of like-kind properties while deferring the payment of capital gains taxes. Here are some key facts to know about 1031 Exchanges:

1. Like-Kind Property Requirement:

   • The properties involved in the exchange must be of like kind, but this term is broadly defined. For example, you can exchange a residential property for a commercial property.

2. Qualified Intermediary (QI):

   • To ensure the transaction qualifies for 1031 treatment, a Qualified Intermediary must be used. The QI holds the funds from the sale of the relinquished property and facilitates the acquisition of the replacement property.

3. 45-Day Identification Period:

   • The exchanger must identify potential...

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