A 1031 Exchange replacement property must be identified within 45 days and acquired within 180 days of the sale of the relinquished property. To be eligible for a safe harbor tax deferral the proceeds must be held by a qualified intermediary between the time of the relinquished property’s sale and the purchase of replacement property.
There are several types of exchanges: Delayed, Improvement, Reverse and Parking Arrangements. Wolterman Law Office has expertise in all of these. Each is a multi-step process and our attorneys will guide you through the following:
- Selling the Property
We will inform you of your exchange options, prepare and organize the required documentation, and notify you of important dates during the exchange process.
- Identifying a Replacement Property
Wolterman Law Office will prepare all necessary forms. IRC §1031 requires that identification of a replacement property take place within 45 days.
- Purchasing a Replacement Property
With the guidance of our attorneys, you will purchase the replacement property within 180 days of the sale of the relinquished property. Wolterman Law Office will transfer the proceeds from the sale of the relinquished property to your escrow company. Upon closing you will receive the deed to the replacement property.
IRC §1031 states that the relinquished and replacement property must be “like-kind.” If the property is being used for investment and income purposes, and not as a primary residence, it can be exchanged. Here are the types of property which the IRC recognizes to be like-kind:
Family Rentals (including multi-family)
Leasehold interest (30+ years)
Recreational Properties (select)