Nov 05 2009
1031 Reverse Exchange Rules Similar to Those For Other Exchanges
Conducting a 1031 exchange, which allows taxpayers to defer capital gains on the sale of a property by exchanging into a new property, is not entirely simple. And whether you sell the property first and then acquire the new property or if you do a Starker Reverse, the fundamental 1031 reverse exchange rules are the same.First , all exchanges must be for like-kind properties; you cannot sell a condo in exchange for agricultural property. Second, there are strict 45- and 180- day timelines associated with these transactions. And finally, like all exchanges, they must be conducted through a Qualified Intermediary.
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