HAVE YOU sold an income property in Upstate New York, Akron, Taos, Boulder or Stowe...and you want to reinvest in a subtropical and sunny beach town like Hilton Head Island, South Carolina without paying any taxes? Please go no farther....
Having done dozens of 1031 Exchanges on our own and others' properties, there are only a few basic rules that you must adhere to:
~The property sold MUST be property held for "income or investment". This CAN include certain second homes and vacant lots. Please click on the red "email me" if you have any questions as to whether your property can or could be included. It also must be "like" property, but this can mean many different things as well. (Email me also if you have a second home. It just might qualify!)
~You can buy replacement property for a lesser or a greater amount. If you get any money out of the transaction, you'll be subjected to tax on the balance, but that can be OK, too.
~There is a time limit. You must make your selection/s within 45 days of closing of the sale property and you have 180 days from that sale date to actually close on the replacement property.
~You must make provisions ahead of time. If you receive your check at closing, it's too late.