Perhaps the most significant challenge to engaging in a 1031 exchange is finding a suitable replacement property. The Internal Revenue Code says that a replacement property must be identified in writing within 45 days from the date of the closing of your relinquished property. Furthermore, you must close on your replacement property within 180 days of the sale of the relinquished property. The 180-day exchange period runs concurrently with the 45-day identification period, and requires the acquisition of all desired identified replacement properties.

1031 Investment Strategies can alleviate the challenges and risks in identifying replacement properties. Using our extensive network of property owners, developers, and brokers, we can locate suitable replacement properties, including triple-net leased and multi-tenant retail, office, and industrial properties, multi-family residential properties, and hotels. We can assist you throughout the 1031 exchange process to find replacement properties of any size, anywhere in the United States.

Our consulting services can help you understand the following conditions of the 1031 exchange:

• The 3-Property Rule: the taxpayer may identify up to three properties regardless of their fair market value, though he is only obligated to purchase at least one; or
• The 200% Rule: the taxpayer may identify more than three properties as long as their combined fair market value does not exceed twice the market value of the relinquished property; or
• The 95% Rule: the taxpayer may identify as many properties as he wants, but before the end of the exchange period he must acquire replacement properties with an aggregate fair market value equal to at least 95% of the aggregate fair market value of all the identified properties.

1031 Investment Strategies can offer the practical knowledge, experience, and advice that will enable you to take full advantage of a tax-free exchange.

Contact us today to get started, or learn more about 1031 Investment Strategies and the other services we offer, including 1031 exchanges and real estate exchanges.

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