IRS 1031 exchange rules 2021

[Joe C.]

Hello, I've sold my 1st rental, a SF home, and made a nice profit. I have sold before. What steps do I need to take if I want to do a IRS 1031 return?  I have no home lined up to purchase. I want to build MF homes. If i purchase a raw piece of land can I shelter a portion of it? Thanks for your advice.

[Tom Malloy]

Unfortunately you’ve missed the window for a 1031 exchange on this property. I just finished one and you have to decide and take steps to establish the 1031 exchange BEFORE you sell the property. There are also rules about it so your best bet is to read up on it and find an intermediary agency that you can use for a future 1031.(easy internet find) One of the rules is that you cannot take possession of any of the proceeds of the sale of your property. All funds have to go to the intermediary until you close on the new property(s).