The “delayed exchange” or “forward exchange” is the most common type of 1031 exchange. When real estate investors or tax specialists refer to a 1031 exchange, they are usually talking about this type of exchange. A delayed exchange allows you to sell an existing investment property and defer paying taxes. The rules are simple: You …
Choosing a qualified intermediary can seem like full-time job. There are many things to consider such as: Is my qualified intermediary reputable? How do I know the qualified exchange company won’t lose my money? The qualified intermediary I’m talking to is halfway across the country. Can I do an exchange over phone and email? Will …
Read MoreDon’t Choose a Qualified Intermediary Before Asking Them These Questions
This is the oldest and most basic type of 1031 exchange. Very rare, it’s when you find a replacement property the same value as your own. While we still recommend using a qualified intermediary, a simultaneous exchange could happen without one. This article walks through the three types of simultaneous exchange. Swap or two-party trade …
Read MoreSimultaneous Exchange – The Absolute Easiest 1031 Exchange Possible
Rules and requirements | Improvement 1031 exchange examples | Pros and cons | Improvement 1031 exchange planning checklist | FAQs An improvement 1031 exchange is when you sell an investment property and use part or all of the proceeds to make improvements to your replacement property. In a conventional deferred 1031 exchange you sell your …
Read MoreImprovement 1031 Exchange: The Ultimate Guide to Rules and Costs
1031 exchange costs by company | 1031 qualified intermediary fees | How do qualified intermediaries make money? | Reverse 1031 exchange cost | Build to suit 1031 cost | Simultaneous 1031 exchange cost | How much should cost matter? The average cost of a standard deferred 1031 exchange is around $1,000. This covers the basic …
1031 exchange of one property for multiple properties | 1031 exchange of multiple properties for one property | Rules | FAQs A 1031 exchange isn’t always a simple 1-for-1 trade. You can also do a 1031 exchange with multiple properties. The exchange with multiple properties can work in two ways: Relinquishing one property and replacing …
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What is a 1031 exchange? | Tax benefits of a 1031 exchange | Types of 1031 exchanges | 1031 exchange costs | 1031 exchange rules for dummies | Choosing the right qualified intermediary | Options for replacement properties | 1031 exchange example | Is it worth doing a 1031 exchange? | FAQs This guide walks …
Depreciation recapture calculator | How depreciation recapture works | Depreciation recapture tax rates | How to avoid depreciation recapture | Depreciation recapture example | Depreciation recapture FAQs Depreciation recapture, a provision the IRS uses to tax the profitable sale of a rental property on which the owner has previously claimed depreciation, can have a great …
Read MoreHow to Calculate Depreciation Recapture on Rental Property
The amount of jargon used to describe a 1031 exchange can be mind-boggling! Use this 1031 exchange term and definition guide to help translate lawyer-speak to layman’s terms.
It’s at once simple — you buy your replacement property first, and then sell your old property — and complex, with many potential downfalls for investors.
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