1031 Corp.
Full Service Intermediary

BOTH PROPERTIES MUST BE "LIKE-KIND"

  • Like-kind refers to the nature or character of the property.
  • Examples of like-kind include rental properties such as duplexes, triplexes, multi-unit apartment buildings, office complexes, raw land, storage facilities, warehouses, factories, hotels, marinas, farms, parking lots, shopping centers, etc.
  • Examples of non like-kind include primary residences, second or vacation homes, stocks, bonds, notes or interest in a partnership. Exchangers can sell one property and acquire three or vice versa.
  • Both properties must be held as a business use or investment property for a minimum of one to two years.

    USE OF A QUALIFIED INTERMEDIARY

  • A qualified Intermediary must be used to facilitate your exchange.
  • Qualified is defined as someone who is not the taxpayer or an agent of the taxpayer (realtor, attorney, accountant or tax advisor, broker, lineal descendant, employee, etc.)
  • The Intermediary agrees to acquire the relinquished property from the exchanger and convey it the buyer and acquire the replacement property from the seller and convey it to the exchanger.

    USE OF A QUALIFIED ESCROW AGENT

  • Again, the escrow agent must be qualified, as defined above.
  • The exchanger cannot have actual or constructive receipt of sale proceeds.
  • The exchanger is entitled to interest earnings on the escrow account.

    MUST ADHERE TO TIME LIMITATIONS

  • The 45-day Identification Period begins at the closing of the relinquished property and requires the written identification of like-kind replacement property.
  • The 180-day Exchange Period runs concurrently to the 45-day Identification Period and requires the acquisition of the identified replacement property.


    for information

    Contact us by form

    1031help@1031corp.com

    or

    call MARGO MUCHA or CHERYL FAGAN at 1-800-828-1031.

    CLICK TO OUR HOME PAGE


    677 West DeKalb Pike
    King of Prussia, PA 19406