The following is an article from the Coldwell Banker St. Croix Realty April 2017 Newsletter:
- A 1031 Exchange pertains to investment or business properties only.
- “Like-Kind” means you swap a property for another investment or business property. You may exchange a rental house for a commercial space.
- The purchase price and the loan amount on the new property must equal or surpass that of the replaced property.
- You must identify a like- kind property or properties within 45 days of your original closing.
- You must purchase the new property within 180 days of your closing.
- The title holder must match on both the old and new properties.
- The IRS permits partial 1031 Exchanges when the new property is of lesser value; you pay capital gains taxes on the difference.