The gift of a 1031 Exchange is that one is able to defer paying what would otherwise be a hefty amount in capital gains taxes. Being able to reinvest that amount in real estate, thereby increasing one’s portfolio size, cash flow, etc., is meaningful and impactful.

Montana has a claw back provision for 1031 Exchanges meaning the deferred taxes will become payable to the state when the Replacement Property is sold and no further exchange is performed. There are no state specific rules for 1031 Exchanges in Utah, Idaho, Wyoming or Colorado.

Yes. To avoid a taxable sale of the Relinquished Property, the use of an intermediary in virtually every 1031 transaction should be utilized. In addition, the Exchanger must enter into written agreements with the QI before the Relinquished Property is sold.

Yes. During the 45 days you can change what you’ve identified, but once your identification period has expired, you must buy from only that list. There cannot be any substitutions or changes after day 45. The rules under section 1031 are very strict.