FAQs
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A 1031 exchange, also known as a like-kind exchange, is a way for real estate investors to sell a property and reinvest the proceeds into a new property while deferring the payment of capital gains taxes.
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The properties involved in a 1031 exchange must be "like-kind," meaning they must be used for business or investment purposes. This includes properties such as rental homes, commercial buildings, and raw land.
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Typically, a 1031 exchange must be completed within 180 days from the date of the sale of the original property.
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Yes, cash or debt received as a part of the exchange is considered "boot" and is subject to capital gains taxes. However, using cash or debt to pay for any remaining difference can help to minimize the amount of boot received.
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Yes, it is possible to exchange multiple properties in a single 1031 exchange, as long as all of the properties involved are like-kind and the exchange is completed within the allotted time frame.
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A qualified intermediary is a neutral third party who holds the proceeds from the sale of the original property and facilitates the purchase of the replacement property. They can be found through a quick online search, or through referral from a real estate attorney or accountant. 1031 Real Estate Exchange Specialist is an example of a QI.
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There is no limit on the number of times an investor can complete a 1031 exchange.
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No, in order for a property to be eligible for a 1031 exchange, it must be located within the United States. This is because you will be reporting the tax-deferred exchange on the form 8824, which you will turn in to the IRS along with your taxes.
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Once the exchange process has begun, the replacement property must be identified within 45 days of the sale of the original property, and the exchange must be completed within 180 days. It is not possible to change the replacement property once the process has begun.
We provide exchange services in all 50 US states & Territories:
We are based in the four corners area, where we began servicing Durango, CO and Farmington, NM.
You may be asking yourself, is there a 1031 specialist near me? Don’t worry, 1031 exchanges can be done nationally, and you can use any QI in the United States to perform your exchange. We perform 1031 exchanges nationally and work with any closing team or company in the US or its territories to complete your exchange.
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Durango, CO; Farmington, NM; San Francisco, CA; New York, NY; Los Angeles, CA; Seattle, WA; Washington, DC; San Jose, CA; Boston, MA; Denver, CO; Austin, TX; Miami, FL; Portland, OR; Dallas, TX; Houston, TX; Atlanta, GA; Philadelphia, PA; San Diego, CA; Chicago, IL; Minneapolis, MN; Detroit, MI; Phoenix, AZ; Las Vegas, NV; Salt Lake City, UT; Baltimore, MD; Tampa, FL; Sacramento, CA; Orlando, FL; Nashville, TN; Raleigh, NC; St. Louis, MO; Charlotte, NC; Pittsburgh, PA; Indianapolis, IN; Kansas City, MO; Columbus, OH; Milwaukee, WI; Cincinnati, OH; Cleveland, OH; San Antonio, TX; Louisville, KY; Buffalo, NY; Richmond, VA; Rochester, NY; Hartford, CT; Providence, RI; New Orleans, LA; Jacksonville, FL; Memphis, TN; Birmingham, AL; Oklahoma City, OK.
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We service Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
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The islands that are eligible for a 1031 exchange are limited to those that are located in the United States and its territories. This includes Puerto Rico, Guam, American Samoa, Virgin Islands, Northern Mariana Islands, District of Columbia and any other territory or possession of the United States.