1031 Qualified Intermediaries
1031 Exchange Options
• Raw Land
• Single Family Rentals
• Duplex / Multifamily
• Commercial
• Farmland
• Vacation Rentals
For over 15 years, 1031 Tax Free Strategies, LLC has served as a Qualified Intermediary (QI) to facilitate 1031 Exchanges for clients throughout the United States. Section 1031 of the Internal Revenue Code allows investors to defer all applicable taxes by exchanging business or investment use property for any other business us or investment property of equal or greater value.
A 1031 Exchange is a great way to increase your buying power by reinvesting funds that otherwise would have been paid in taxes on the sale of a property. Allow one of our Certified Exchange Specialists (CES) assist you with this process by using their knowledge and experience with the 1031 Exchange rules and proceedures.
1031 Update
Understand the 45 day Rule 1031 Exchanges
There are two timing requirements in every 1031 exchange. The two rules are the 45 and 180 day rule. While both are important, the 45 day rule always has more questions about what it means and how it works.
What the 45 day rule says is that on the day you sell your relinquished property, the Exchangor(client) has 45 days to identify their replacement property. Many things can happen during this time period let me outline the most common. Remember 45 days means, 45 calendar days not business days.
1. The Exchangor can buy a replacement property at any time in the 45 days and they will not need to identify the replacement property because their exchange is complete. If the Exchangor does not use all their proceeds they can also identify replacement property.
2. If the Exchangor cannot close on a replacement property in 45 days, they can identify 3 properties of any value. They must close on one of these three properties in 180 days from the date of sale of the relinquished property sale.
3. If the Exchangor wants to buy more than 3 properties, they can identify more than three properties as long as the combined value of the properties does not exceed 200% of the relinquished property sale price.
4. The Exchangor can do nothing in the 45 day window and the exchange is over with no tax deferral.
The Exchangor can buy multiple replacement properties. They are not limited to one. The calculation is based on the value of the properties.
If you need more help or clarification with the 45 day rule call us 239-333-1031.