Types of 1031 Exchanges

Simultaneous Exchange

To concurrently transfer ownership of both the relinquished property and the replacement property.

Delayed Exchange

A property is sold and within 180 days, a replacement property is purchased.

Reverse Exchange

The replacement property is identified and purchased before the relinquished property is sold.

Improvement Exchange

When the exchanger wishes to either make improvements to an identified replacement property, or construct a new replacement property.

Personal Property Exchange

The exchange of property other than real estate to defer capital gains taxes.

General Asset Classes include:

  1.      Office furniture, fixtures, and equipment
  2.      Information systems
  3.      Data handling equipment, except computers
  4.      Airplanes and helicopters
  5.      Automobiles and taxis
  6.      Buses
  7.      Light general-purpose trucks
  8.      Heavy general-purpose trucks
  9.      Railroad cars and locomotives
  10.   Tractor units for use over-the-road
  11.   Trailers and trailer-mounted containers
  12.   Vessels, barges, tugs, and similar water transportation equipment
  13.   Industrial steam and electric generation and distribution systems

 

What Does Not Qualify for a 1031 Exchange?

Personal property that does not qualify under IRS guidelines includes:

Stock in trade or other property held primarily for sale

Stocks, bonds or notes

Other securities or evidence of indebtedness or interest

Interest in a partnership

Certificates of trust or beneficial interests