Generally, when one discusses 1031 Exchanges, the type of exchange referred to is the delayed, deferred or tax deferred, like- kind, real estate or Starker Exchange. Here’s a quick video highlighting the most common type of exchange.
Generally, when one discusses exchanges.
The type of exchange referred to as the Delayed, Deferred, or Starker Exchange.
This term comes from the name of the exchanger who was first challenged for a delayed exchange by the Internal Revenue Service.
And it was from this tax Court conflict that we got the code change in
1984 that formally recognized the delayed exchange concept for the first time
As mentioned earlier This is now the most common type of exchange there is in the Delayed Deferred Exchange.
The Relinquished Properties sold at time one and after a delay the Replacement Property is acquired at time two.
The timing requirements are these.
You have a total of 180 calendar days with a due date of your tax return to complete an exchange.
This is known as The Exchange period.
Also, the first 45 days of the 180-day exchange period is known as the identification period.
In which you need to identify some candidate or target properties to serve as your Replacement Property in your Exchange.