1031 Exchange Real Estate
Real Estate: 1031 Exchange?
I have a real estate question related to a 1031 exchange that I am in the process of completing. Can the exchanged property be located in a different state?
I own property in california and wish take advantage of this law.
Also, can I apply the exchange for 4 units and upgrade to 20?
Will it still apply if it is not like property?
Thanks,
NJ
I am a Qualified Intermediary with First American Exchange Company. Let me help you out with these answers.
Yes, you can exchange property anywhere in the US for other “like kind” property anywhere in the US.
By doing a 1031 Exchange, you will also defer CAL FIRPTA.
You can exchange 4 units for 20 units, but to defer all taxes, your replacement property must be of equal or greater value than your relinquished property.
Lastly, like kind is defined as “property held for productive use in trade or business or for investment”. Therefore, as long as you are selling investment property and purchasing investment property, you will satisfy the 1031 requirements.
Also, as previously stated, there have been some Qualified Intermediaries who have gone under recently. Be careful who you choose as an Accommodator. Make sure of the experience of your Accommodator and ask what their bonding limits are. Also, find out who guarantees their funds. If they have no parent company, be very cautious.
Email me at pro1031@yahoo.com if you have further questions.
Seattle 1031 Exchange Expert Interview
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Exchanging Up $17.85 In easy-to-understand language, you’ll learn how to: Use the Six Essential concepts that are necessary for every exchange. Build on land that you already own using your exchange proceeds from your sale (so called ‘Build-to-Suit’ Exchanges. Make improvements to the property that you’re buying or exchanging into…(Improvement Exchanges). Do construction on land that you buy in an exchange (Construc… |
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Buying Investment Properties with Your IRA…or 1031 Exchange: Diversify Your Retirement Portfolio! Real Estate ? Investing ? Tax-DeferralWith the future of Social Security uncertain and the Stock Market providing such stomach-churning roller coaster rides, now, more than ever before, we need to take more control of our future! This book will show you how owning Investment Real Estate will Turbo-Charge your Retirement Funds when purchased properly using either your Self-Directed IRA or a 1031 Ex… |