The questions here were received from interested 1031 exchangers visiting my website. I have chosen to leave the questions intact with their ambiguity, shorthand writing and misspellings so as not to act on the assumption as to what when unclear the questioner meant.
Failed Exchanges, Part 2
Want to succeed in a 1031 exchange? Planning and research are key.
There are number of core rules to completing a successful 1031 exchange. Avoiding failure means getting the required ID’s and qualified intermediary paperwork for settlement. It also means using the right timeframe and complying with eligibility requirements.
In addition, those who are contemplating a 1031 exchange have to understand ‘like kind,’ a criterion for eligible properties. They have to understand what the qualified intermediary does and why that’s important. They need the right legal and tax advice to do the exchange the right way. All of this is a good foundation for completing a 1031 exchange in full accordance with legal requirements.
Question 1:
2 days ago I closed on the sale of rental property thinking I had 180 days to do a 1031 deferred exchange. I didn’t realize that I needed an exchange intermediary to facilitate the disposition of relinquished property and acquisition of replacement property. Am I too late to do an exchange?
Answer:
Unfortunately, that type of exchange is not possible – it’s best to plan ahead.
Question 2:
I sold a Malibu land 3 mths ago and sold a house 1 mth ago. How long do I have to file 1031 exchange & buying other house to defer tax on my capital gain?
Answer:
In hindsight, without qualified intermediary paperwork at settlement, a 1031 exchange is not possible. We always talk about bringing a QI to the table because then you would have 45 days to identify properties.
About Marilee:
Role of Marilee Hill, Registered Representative (RR)
When you need trusted real estate advice, talk to Marilee Hill. Her experience managing properties and practicing real estate in various jurisdictions has helped her to build a reputation as a knowledgeable professional with expertise in various kinds of real estate deals including 1031 and like kind exchanges.
There’s a lot to learn in a 1031 exchange or related deal. But real estate is also about people. Marilee Hill knows how to deal with sponsors and all stakeholders in an exchange deal to make everything run smoothly.
Talk to her about your plan to see if it is viable.
