1. It must be for investment property. Will not apply to a primary residence. Does not apply to flipping a property. You must hold the property for a two-year period. (January 2006 - January 2007 is considered two years).
2. From the day you close on your property, you have 45 days to make a list of properties you might want to purchase. Cannot purchase a property for less than the property you are selling. If you list more than three properties you become subject to the "200 percent rule." The total combined purchase price of every property on your list cannot be more than twice the selling price of your property.
3. From the day of the close, you have exactly 180 days in which to buy your replacement property.
4. You cannot touch the money in between the sale of the old, and the purchase of the new property. The money must be held by a qualified intermediary.
5. You must hold the title to the new property exactly how you held title to the old property.
6. You must buy equal or up and reinvest all of the profited funds from the original sale.
1 comment:
Nice post, Denise! I think 1031 tax exchanges are something that more investors should investigate and utilize.
My CPA and I were discussing 1031's and he felt it pertinent to emphasis that these strategies were just deferrals for paying taxes; you'll never get away from them.
Post a Comment