1031 Exchange Properties on Sale Throughout the United States

MAPLE PLAIN, Minn. - July 11, 2019 - PRLog -- Amidst the booming real estate market in the United States, the number of investors inclining towards 1031 exchange has also increased by leaps and bounds over the years. The reason being obvious, Section 1031 of IRC or 1031 exchange allows investors to defer capital gains tax on selling their investment property if the proceeds from it are reinvested in other like-kind property. As per the rules, if an investor enters a 1031 exchange agreement, they must close the deal within 180 days from the day of the sale of their relinquished property.

The busiest and most populated states like California, Texas, New York, etc. have seen a tremendous rise in the number of 1031 investors in the recent years, which in turn, have also increased the demand for 1031 properties at such locations. In order to successfully qualify for a 1031 exchange, an investor must abide by the rules established by the IRS, and one of those rules suggests that properties involved in 1031 exchanges must be held for use in trade, business or for investment purposes. In other words, an investor can't trade their primary residence using a 1031 exchange.

Where 1031 investors' attention should be is on the time frame of 45 days in which they need to identify a potential replacement property. It is known as the Identification Period. The rule says, a 1031 investor must identify one or more replacement properties within 45 days, which begins the day the relinquished property is sold. Written identification of the replacement property, containing its street address, must reach 1031 Corp. on or before the midnight of the 45^th day. In case the investor fails to do so, that particular exchange will no longer be valid.

Getting hold of 1031 exchange properties (https://1031xchange.com/) isn't a big deal. However, the pursuer of 1031 exchange, that is the investor, must reach out to a Qualified Intermediary for this because of two reasons. First, the IRS has made the participation of Qualified Intermediaries compulsory for 1031 exchanges. In other words, an investor can't close their 1031 exchange without involving a Qualified Intermediary. Second, Qualified Intermediaries are generally vastly experienced and have tons of contacts that make locating properties easier. They generally have a list of 1031 properties that are available for sale throughout the United States. Therefore, finding a good and experienced Qualified Intermediary is as important as locating an ideal replacement property within the specified time limit.