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Looking for information on 1031 exchange
Hello! I'm looking for resources on how to do a 1031exchange on my SFR in Hueytown, AL to a MFR in central OH. Thank you!
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Cheryl Burd, The first and foremost requirement is that you must use a qualified intermediary to document the exchange and hold the proceeds. You cannot have receipt of the proceeds in any way. So the QI must be in place prior to the closing of your sale. Build you calendar off of that.
There are several other requirements that must be met.
1. SF to a MF is fine
2. From the date of close you have 45 more days to identify you potential replacement properties. And a total of 180 days to complete the process.
3. The tax payer for the old property has to also be the same tax payer for the new property.
4. And in order to defer all tax you must purchase at least as much as your net sale. And use all of the net proceeds for your purchases.
1031s are detailed but only the first one will be scary :). I'll reach out via pm with some summary resources.
- Dave Foster
