FAQ
Questions and Answers
Q. What property qualifies for a 1031 Exchange?
A. Relinquished and replacement properties must be property held for investment.
Q. How long do you have to find a replacement property?*
A. Identification must be received within 45 days of the close of the relinquished property.
Q. When must the replacement property close?*
A. The replacement property must close 180 days from the close of the relinquished property or the date the Exchanger must file their tax return (including extensions) whichever occurs first.
Q. Who controls the proceeds?
A. The proceeds must be held and controlled by a Qualified Intermediary NOT by an agent, escrow, or related party which includes relatives.
Q. What is boot?
A. Any time there is excess money or unmatched property coming from the relinquished property there will be a taxable event.
Q. What is adjusted basis?
A. Generally it is determined by taking the sales price when acquired cost of capital improvement less depreciation (check with clients CPA basis may not be the sale price).
* There are no extensions for Saturdays, Sundays, or Holidays.
Please contact us if you have any questions regarding 1031 Exchanges or the information on this page.