Can You 1031 Exchange One Property for Multiple Properties?

Section #1031 of the IRS code is surprisingly flexible when it comes to the number and types of properties you can exchange. There are constraints of course, because after all this is the IRS. Still, investors will find they have many choices when it comes to quantity and type of properties to exchange.

In fact, it doesn’t matter how many properties you are relinquishing or replacing (1 property into 4, or 2 properties into 1 or any other combination). The only requirement is that, at the end of the day, you go across or up in value, mortgage and equity. And, of course, that you meet all the strict deadlines for time and identification constraints of section 1031.

So while it may be more difficult to exchange one property for four or five, it is allowed under current IRS code.

If you’re considering a 1031 exchange, please contact me to learn more about the exchange process, our qualified intermediary services and how we can help you find and close on your next 1031 exchange property.