How Does A 1031 Exchange Work?


How does a 1031 exchange work? You must want to relinquish investment property and to replace it with other like-kind investment property. Generally, investment real property is exchangeable with any other investment real property regardless of use. You must acquire replacement property within 180 days. By using us as a “Qualified Intermediary” you carry forward the tax basis from the relinquished property. The gain is recognized in the future when replacement property is sold without a 1031 exchange. In order to fully defer capital gains tax, you must exchange equal or up in value and equity.

Ask Us A Question

Phone Email