madmn asked:


Can you sell a 13 unit trailer park and buy a duplex in a year with a 1031 Exchange.

Denise

No Responses to “Can you sell a 13 unit trailer park and buy a duplex in a year with a 1031 Exchange?”

1. Doctor Deth on December 18th, 2010 11:35 am

   probably not - they are not the same types of properties

2. pro1031 on December 21st, 2010 2:49 am

   Yes, you can, but there are some rules you must follow.

   First, you must be selling and buying investment property, or as the code says “…property held for productive use in trade or business of for investment.” If so, then these two properties are considered “like-kind” under IRC 1031. Now, you need to understand the time requirements.

   You must identify your replacement property within 45 days from the date that you relinquish your property. You also must acquire the replacement property within 180 days of the date that you relinquish your property. So, in almost all situations, you must complete your exchange within 180 calendar days.

   Lastly, there are financial requirements to have a satisfactory 1031 exchange. To defer all of your taxes, you must first deposit all of your net proceeds from your sale with your QI and use all of those funds as deposit on your replacement property. Secondly, you must acquire a loan on your replacement property of equal or greater value than the loan which is paid off on your sale. If you do not have a loan payoff on your relinquished property, you do not need to get one on your replacement property.

   Remember, when you do a 1031 exchange, you must hire a Qualified Intermediary (QI) to prepare documentation and to set up an account for your funds BEFORE the closing of your relinquished property. I am a Qualified Intermediary with First American Exchange Company, one of the nation’s largest and most financially secure Qualified Intermediaries.

   If you would like to learn more about the process, visit our company website at. To watch a 3 minute flash presentation on the topic, visit the link

   First American Exchange Company (FAEC) is a full-service Qualified Intermediary that does business in all 50 states. FAEC is a wholly-owned subsidiary of First American Title Company. We have offices across the country for your convenience. Please visit our website and find one of our offices in your area. Should you have any further questions, please contact us through our corporate website or contact me personally at. I would be more than happy to answer any questions you may have about the 1031 process and get you in contact with one of our representatives in your area.