Handling Earnest Money Deposits in a 1031 Exchange
When purchasing real estate, buyers typically include an earnest money deposit with their offer to the seller. The deposit may be refundable or non-refundable, depending
When purchasing real estate, buyers typically include an earnest money deposit with their offer to the seller. The deposit may be refundable or non-refundable, depending
When engaging in a 1031 Exchange, the taxpayer must identify their replacement property(ies) within 45 days of closing on the sale of their relinquished property.
Under Internal Revenue Code Section 1031, exchange of “stock in trade or other property held primarily for sale” will not qualify for tax deferral. Consequently,
IRS Code §1031 clearly states that for a property to qualify as a tax deferred exchange during a transaction, it must be “held for investment.”