1031 Exchange - suggestions needed
Hello everyone,
I have owned a property in Memphis for two years now which has been rented from day 1. 2 weeks ago I have decided to sell my property as my tenant's lease was expiring and I want to purchase another property in Buffalo NY where I will be moving.
The tenant has offered to purchase the house and we are currently in the closing process. As this is my first deal and I would like to do a 1031 exchange so I can defer the taxes i do have some questions:
1. Any recommendations for any specialist that can assist in this process?
2. What is the deadline that I should know about? (I believe is 180 days from the closing date)
3. Is there an issue that the property is closing in TN and the property I want to purchase is in NY?
Any other suggestions / advice highly appreciated.
George
Most Popular Reply
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@George T., You've got to have a qualified intermediary (that's the specialist you're talking about) in place prior to the closing. I don't see any issues at all with what you want to do.
From the date of the sale you have 45 days to identify your potential replacements. You have a total of 180 days to close and complete the exchange.
going from TN to NY is no problem at all.
There's some other things that need to be verified and tracked. This is the role that your QI plays. But they must be in place before your property closes or you cannot do a 1031.
- Dave Foster
