1031 Investment – How long do you have to buy a property with a 1031 Exchange?

 

SOLD.  $4.5M. JOYCE KIM -COLDWELL BANKER GLOBAL LUXURY

 

1031 Exchange or Tax- Deferred  Exchange 

In a typical Internal Revenue Code (IRC) §1031 delayed exchange, commonly known as a 1031 exchange or tax-deferred exchange,
a taxpayer has 45 days from the date of sale of the relinquished property to identify potential replacement property.

This 45-day  a window is known as the identification period.

 Q.  How long do you have to buy a property with a 1031 exchange?

A.  From the time of closing on the relinquished property, the investor has 45 days to nominate potential replacement properties
and a total of 180 days from closing to acquire the replacement property. Identification requirements:
The investor must identify the replacement property prior to midnight on the 45th day.

Q.  Can you do a 1031 exchange on primary residence? –

A.  If you’ve established that your property is no longer your primary residence, but a rental property. Now you can do a 1031 exchange and defer
all of the capital gains from a sale of that residential property.