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| 5 Things To Know when Doing a 1031 Exchange |
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1. You cannot have actual or constructive control of any of the proceeds received from the sale of the old property. By law, all money must be held by a Qualified Intermediary (also referred to as an Accommodator or Facilitator). You cannot have an associate or employee, your attorney, broker or CPA hold the proceeds, nor can you leave the proceeds in escrow until the second property is purchased.
2. You have 45 days from the date of closing on the old property to identify a list of properties, from which you will purchase the new property.
3. From the date of closing, you have 180 days to close on one or more of the properties from your 45-day list.
4. The titleholder on the old property must be the same titleholder on the new property.
5. You must reinvest all cash proceeds from the sale, and purchase a new property or properties of equal or greater value, in order to avoid taxation on the gains. |
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| National Income Property © 2007-2008. All Rights Reserved. Texas Real Estate Broker License 0532608. As with any investment, real estate may carry various risks including, but not limited to: loss of principal, variations in occupancy which may negatively impact cash flow, liquidity, and limits on management control of the property. Scott Friedson is a Texas Licensed Real Estate Broker and Loan Officer. |
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