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Nov 29, 2023 · You must hold the replacement property acquired through a 1031 exchange for productive use in a trade, business or investment. Personal residences don’t qualify. Full reinvestment required...
Apr 19, 2024 · Updated April 19, 2024. Reviewed by. David Kindness. Fact checked by Marcus Reeves. Grace Cary / Getty Images. A 1031 exchange is a swap of one real estate investment property for another...
The 26 U.S. Code § 1031 – “Exchange of Real Property Held for Productive Use or Investment” – has several must-adhere-to rules to ensure a valid transaction and to avoid an unanticipated tax bill. Many of those rules—such as the following—are specific to replacement properties as part of the exchange.
type of Section 1031 exchange is a simultaneous swap of one property for another. Deferred exchanges are more complex but allow flexibility. They allow you to dispose of property and subsequently acquire one or more other like-kind replacement properties. To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case
A transition rule in the new law provides that Section 1031 applies to a qualifying exchange of personal or intangible property if the taxpayer disposed of the exchanged property on or before December 31, 2017, or received replacement property on or before that date.
Jan 1, 2022 · Sec. 1031 provides for deferral of capital gains on the exchange of property held for productive use in a trade or business, or for investment, for replacement property that is also held for productive use in a trade or business or for investment purposes (Regs. Sec. 1.1031 (k)- 1 (a)).
Jan 28, 2023 · Delayed reverse exchange, in which the replacement property is acquired before the sale of the original property. Delayed build-to-suit exchange, with the...
