Additional Important Points:
These are some FAQs and other important points to ponder considering a 1031 exchange.
- Properties can be in different states
- Any of the 50 - not outside of U.S.
- Time limitations CAN NOT be extended. (45 and 180)
- A partial 1031 is allowed.
- Trading down, desire to use some proceeds for personal use
- You CAN refinance the new property after the exchange!! No waiting period.
- You can have a mortgage on the replacement property
- 1031 Exchanges are not always difficult - but they have guidelines that are VERY important. •Any investor can benefit from a 1031 - not just a "big" investor
- The cost of a 1031 could be approximately $600-800 for a simple transaction, and several thousand for a custom or more complex scenario. Certainly worth the cost.
- You can not "flip" a property and use 1031 - you have to hold the investment property for at least one year.
It is important to note that Steve Kappre is not a tax accountant or an attorney and only offers this information in regards to his personal experience. Consult your personal 1031 exchange consultant for your personal needs and scenario.