Like-Kind Exchanges - Real Estate Tax …
https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips
When conducting a 1031 exchange, or a like-kind exchange as it’s sometimes known, the IRS requires the following: Exchanges are permitted only for real property. You have 45 days from the closing of your relinquished property to identify the replacement property. You have 180 days from the closing of your relinquished property to close on the replacement property. The entire process, from selling the relinquished property to closing on the replacement property, is conducted by a qualified intermediary. Proceeds from the sale must be held in escrow by a third party, then used to buy the new property; you cannot receive them, even temporarily. The properties being exchanged must be considered like-kind in the eyes of the IRS for capital gains taxes to be deferred. Exchanges are permitted only for real property. A 1031 exchange is a tax break. ... Proceeds from the sale must be held in escrow by a third party, then used to buy the new property; you cannot receive them, even temporarily.
Exchanges are permitted only for real property.
You have 45 days from the closing of your relinquished property to identify the replacement property.
You have 180 days from the closing of your relinquished property to close on the replacement property.
The entire process, from selling the relinquished property to closing on the replacement property, is conducted by a qualified intermediary.
Proceeds from the sale must be held in escrow by a third party, then used to buy the new property; you cannot receive them, even temporarily.
The properties being exchanged must be considered like-kind in the eyes of the IRS for capital gains taxes to be deferred.
A 1031 exchange is a tax break. ...
DA: 50 PA: 70 MOZ Rank: 18