Posted by David on May 31, 2000 at 15:05:10:
its a tax free exchange. you need competent help either a lawyer or CPA who is familar with the tax law.
for example you have to identify the property in 45 day and settle in 180 days. if you’re the buyer and don’t have a property to exchange it can be easier, but you may have delays to satisfy the seller.
1031 exchange…Help me… - Posted by Suge
Posted by Suge on May 31, 2000 at 12:09:13:
I am looking at a property that a seller is really flexible and she has told me that she prefers a 1031 exchange. What does it entail and what is it??? I have never heard of such a term. Could someone please explain this to me??
Thanks all for your responses.
Suge.
1031 exchange - How it Works-Rarely W/Two Parties - Posted by Rolfe Kurtyka
Posted by Rolfe Kurtyka on June 05, 2000 at 01:23:30:
A 1031 exchange requires only one “relenquisher”. Rarely are two parties involved in a “trade”. In most cases, it works like this;
Exchanger sells a property - proceeds go into escrow with a “Qualified Intermediary”. (QI’s are specialist in exchanges, not ordinary attorneys or CPA’s). Exchanger must find another property for sale, and officially identify the replacement property within 45 days of the first close. Then the exchanger must offer and close on the identified property within 180 days of the first close. At the second closing, the profit from the first sale goes from escrow to the second seller. Only the exchanger and the qualified intermediary need to agree to an exchange. To the other buyers and sellers, the deal appears to be just another sale. The exchanger, having never been in posession of the sale proceeds, does not pay capital gains tax. Other restrictions apply, but that is the gist of it,
Rolfe
Re: 1031 exchange…Help me… - Posted by chris
Posted by chris on June 01, 2000 at 02:51:33:
http://www.apiexchange.com/api/api.htm
Some good info on 1031s at the above link. If that gets your interest you can find more info at:
http://dir.yahoo.com/Business_and_Economy/Shopping_and_Services/Real_Estate/Financing/1031_Exchange/
-Chris