Q: How long do I have to identify my replacement property?
The IRS allows for a 45 day time interval for identifying the replacement property. From the day of the sale of the relinquished property, the investor has 45 days to identify their replacement properties. (See Rules and Timelines regarding identification).
Q: Can I hold the proceeds from the sale of the relinquished property or have the settlement agent hold the proceeds?
In an exchange, all proceeds from the relinquished property must be held by a qualified intermediary such as Peak 1031 Exchange,Inc. If you, as the investor, have any control over the proceeds, there will be tax consequences in accordance with §1031.
Q: What is the time frame for initiating a 1031 exchange?
Your decision to do a 1031 exchange must come before the sale of the relinquished property. The proper exchange documentation must be signed and given to all subject parties before ownership of the relinquished property is transferred.
Q: How do I know what type of exchange suits my needs?
One of our exchange specialists will help you identify the type of exchange that meets your exact needs. Simply complete the Contact Us form or call us at 866.357.1031.
Q: What is the fee for doing a 1031 exchange?
The fee for a Simultaneous/Delayed/Personal Property exchange is a flat rate of $700 which includes the sale of one relinquished property and the purchase of one replacement property. Additional replacement property fee is $200.
If the exchanger receives a promissory note and deed of trust from the Buyer of the relinquished property as part of the exchange proceeds, there will be an additional $350 processing fee.
The fee for a Reverse or Improvement exchange is dependent on the complexity of the transaction and starts at $4,000.
The reverse exchange fee is $4800 and up, depending on the complexity of each transaction.