The Internal Revenue Service (IRS) is specific with the types of properties that qualify for a Section 1031 Exchange. People who need help a suitable replacement can go to 1031 Exchange Place.
[BOISE, 5/15/2018] — A person looking to accomplish a Section 1031 exchange need to do an exchange of properties. One simple type of exchange is to simultaneously swap one of his/her property for another through a like-kind for a Section 1031 Exchange
When performing a like-kind exchange, the replacement property for purchase along with the relinquished property for sale needs to satisfy these specific requirements outlined by the IRS:
- Both properties should be similar to qualify as “like-kind.” They must be of the same class, character, or nature. A vacant land, for instance, is like-kind to real property improved with a residential rental house.
- The property for exchange must not be any of the following: Certificates of Trust, Partnership Interests, Stocks, Bonds, and Notes, Inventory or Stock in Trade, or Other Securities or Debt.
- Both properties should be for use in a business or trade or for investment. Properties for personal use, such as a vacation home or primary residence, do not qualify for like-kind exchange treatment.
Assisting People in Determining a Replacement Property
Individuals have only has 45 days from the time they close on their relinquished property to find replacement property candidates. Some exchanges, given the short amount of time, may have difficulty determining a suitable property.
Fortunately, 1031 Exchange Place offers the Replacement Property Assistance Program to help people with this process. The company’s affiliate team augments the efforts of the client’s financial advisor or real estate agent by assisting them in searching for suitable replacement property alternatives. Clients can rest easy knowing that the company’s team of experienced affiliates will find a replacement property within the period provided by law.
About 1031 Exchange Place
1031 Exchange Place has been helping clients navigate the intricacies of a 1031 exchange since 1997. The company takes pride in providing industry-leading service as well as offering one of the lowest fees in the country.
Visit https://www.1031ex.com/ for more information.