Russell Marsan

Yes. While 1031 Exchanges are governed by federal tax law, some states have additional requirements. In Nevada, state law requires that 1031 Exchange funds be held in a qualified escrow account or a qualified trust account to help protect exchange proceeds. Idaho requires that a Qualified Intermediary be licensed in the state. IPX1031 is properly licensed to act as a Qualified Intermediary in Idaho. Because state requirements can vary, it’s important to work with a QI that understands and complies with both federal and state regulations.

Unfortunately not. The IRS doesn’t allow an exchanger to exchange into property that has been owned by the exchanger in the last 180 days. The exchanger must buy Replacement Property from someone else.

If you are selling an investment property (rental house, raw land, commercial, apartments, etc.) and will likely pay a substantial amount of tax on the gain, then the 1031 Exchange is probably right for you. Most people don’t realize all the financial objectives you can achieve using a 1031 Exchange. A 5-10 minute conversation with me is all it will take to let you know your options and to determine if a 1031 Exchange is right for you. Give me a call at (530) 755-8355 to discuss.

The “like-kind” term is one of the more misunderstood parts of Section 1031. Like-kind sounds restrictive, but it’s actually not. All real estate held for business or investment purposes in the United States is like-kind to all other U.S. property. That means you can sell a rental house and buy raw land, commercial, industrial, apartments, mini storage, etc. It’s all like-kind. The only types of real estate that are NOT like-kind are properties held for personal use or inventory (flipped or dealer property).

A 1031 Exchange must be set up prior to closing of the Relinquished Property. Once a Relinquished Property is under contract with a buyer, the exchange can be set up. To set up the exchange we need contact information for the exchangers, fully executed purchase agreement, and the title commitment from the title company. Once we have that information we can get the exchange set up quickly. Give me a call at (530) 755-8355 to get started or fill out my Start an Exchange form.