1031 exchange the basics

Dear 1031x:  My wife and I own a condo in NJ that we purchased in 1987 for  $90K.  We've rented it for the last 14 years and plan to sell for $260K in  January 2006. Realtor fees are 5%. How can we qualify for 1031x treatment  and roll this into a new investment property and pay minimal taxes?

Dear Dan:  You need a company like ours to escrow the sale proceeds between your sale and repurchase.  You must trade equal or  up in value (minus costs of sale) and you need to reinvest all exchange proceeds.  You can purchase any real estate within the US and as long as it is held for investment.  You can by one or more properties as replacement.  You must ID the replacement property(ies) within 45 days after you sell and complete the purchase(s) within 180 days of your sale.  If you follow all of these rules you will defer both federal and state income taxes. That's it in a nutshell.  Our fee is $400 for a one for one 1031x.  May we be of service to you?

Steve Hickox
Attorney / President