How long do I have to identify replacement property in a 1031 exchange?
Generally, investors have 45 calendar days from the transfer of the relinquished property to identify potential replacement property in accordance with the applicable IRS requirements.
How long do I have to complete a 1031 exchange?
Generally, the replacement property must be acquired within 180 days after the transfer of the relinquished property, subject to applicable tax-return deadline rules.
Does a 1031 exchange eliminate taxes?
A 1031 exchange generally provides tax deferral rather than automatically eliminating taxes. The amount of gain recognized can depend on the specific facts and structure of the transaction.
Can I use a 1031 exchange for my primary residence?
A primary residence generally does not qualify for a standard 1031 exchange because Section 1031 applies to qualifying real property held for investment or productive use in a trade or business.
Do I need a Qualified Intermediary?
A Qualified Intermediary is generally used to facilitate a deferred 1031 exchange and help prevent the taxpayer from taking actual or constructive receipt of the exchange proceeds.
Can I exchange one type of investment property for another?
Potentially. Like-kind treatment for qualifying U.S. real property is generally broad, meaning different types of investment or business real estate may qualify, provided the applicable requirements are satisfied.
When should I contact Aspen Exchange?
It is best to contact Aspen Exchange before closing on the sale of your relinquished property. Early involvement gives the exchange team time to prepare the required documentation and help coordinate the transaction.
