A valid property exchange under IRC §1031 involves selling investment property to reinvest the equity into a new investment property of equal or greater value to defer capital gains taxes. This option allows investors to maintain their investment equity for further property investments without immediate tax liability.
With a 1031 exchange, like-kind replacement property must be identified within 45 days and acquired within 180 days of selling the relinquished property, with proceeds held by a qualified intermediary for safe harbor tax deferral. Our experts at Peak 1031 Exchange will guide you through this three-step process.
This step involves selling the relinquished property, initiating the 1031 exchange process.
The exchanger must identify potential replacement properties within the 45-day identification period.
Within the 180-day exchange period, the exchanger acquires the identified replacement property or properties, completing the 1031 exchange.
