Colorado 1031 Exchange – What Are the Requirements for a 1031 Exchange in CO?

Hello. I’m Danita Vigil with IPX1031 Exchange Services, and I’m here with my business partner, Tracy Wilson. And we’re gonna talk a little bit about what is different about the state of Colorado with 1031 exchanges.

So in the state of Colorado when you’re doing an exchange here, there is a 2% withholding on the sale of investment real estate. But that two percent withholding completely is avoided by doing a tax deferred exchange. You wanna make sure that the exchange is has no boot, has no, buy down or leftover exchange proceeds so that the entire exchange is valid and therefore none of the two percent withholding is applicable.

Colorado does not have any other, rules that inhibit the exchange process. For example, California has a clawback provision. Colorado doesn’t have anything like that. So the biggest obstacle we have other than buying real estate in today’s market is that 2% withholding, which again can be completely avoided by doing a fully deferred tax 1031 exchange.

So please call us anytime. We’d love to be able to answer more questions for you.

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