Oct 07, 2022 · 1031 Exchange Rules. Taxes rarely make for exciting reading material, but if you own an investment property, there’s at least one set of IRS regulations you absolutely will want to understand: 1031 Exchange Rules. Real estate investors like you have the option of using a 1031 Exchange.
An exchange of real property held primarily for sale still does not qualify as a like-kind exchange. 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 ...
Paragraph (2)(D) of section 1031(a) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subsection (a)) shall not apply in the case of any exchange pursuant to a binding contract in effect on March 1, 1984, and at all times thereafter before the exchange.
Jun 26, 2019 · 1031 exchange identification rules state that both properties in a 1031 exchange must be “like-kind.” But even though the definition of like-kind is very broad, some restrictions apply. Consult our chart below to see what kind of property is and isn’t like-kind.
Special rules for capital gains invested in Qualified Opportunity Funds (QOFs). Effective December 22, 2017, section 1400Z-2 provides a temporary deferral of inclusion in gross income for capital gains invested in QOFs, and permanent exclusion of capital gains from the sale or exchange of an investment in the QOF if the investment is held for at least 10 years.
Prepares the legal agreements necessary to properly structure a 1031 exchange. Holds and safeguards your money from the sale of a property (i.e., your 1031 proceeds) until you close on a replacement property. Ensures that your exchange complies with the Internal Revenue Service’s rules. A qualified intermediary (QI) must facilitate a 1031 ...
1031 Exchange Rules for 2021. From Qualified Intermediaries to reporting your exchange - here is a list of rules and requirements for a 1031 Exchange.