Dec

7

How often can I do a 1031 exchange?

Filed Under Home :: Real Estate 

Tweety018 asked:


Say someone does a 1031 exchange on home A and replaces with home B. Can they perform another 1031 exchange if they don’t like home B and go for home C? Is there a time requirement they need to hold on to home B? I’ve been trying to find some guidance about this, but there isn’t much. Any help would be great. Thanks.

Alicia
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    • Comments

    No Responses to “How often can I do a 1031 exchange?”

    1. pro1031 on December 9th, 2010 4:03 am

      Section 1031 does not give specific as to how long an investor must hold property, but it does day that property must be “held for productive use in a trade or business or for investment”. You can sell property B and purchase property C, but you need to consult with your tax professional to make sure that you can prove, if ever necessary, that you held the property for investment purposes. If the facts and circumstances are on your side, I would suspect that your tax professional would say that you could do another exchange.

      If you would like to read further on this topic, view the following links from my company’s website.

      An article on how long you must hold property -

      If you would like to learn more about the process, visit our company website at

      If you would like to watch a short 3 minute video on how the exchange process works, go to

      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.

      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.