This week (June 19, 2020) I interviewed Bill Horan, President of Realty Exchange Corporation about 1031 Tax-Free Exchanges. You may see below the questions we went over during our interview.
- What is a 1031 Exchange? I know this is a loaded question. Can you briefly tell us?
- Why do people do 1031 exchanges? What’s the benefit of doing 1031 exchange?
- What is a like-kind property? Is residential home and commercial retail property like-kind?
- On what type of properties are 1031 Exchanges Allowed? What is eligible, what is ineligible? Your resident? Second-home/ vacation home? Flipping? Air rights? Timber rights? Investment property? Dealer property? Partnership interests?
- What is the timing for identification and closing on a property? If we can not keep up with the time limits what happens?
- Are there any changes introduced to the 1031 exchange process due to COVID -19?
- Tax-free exchanges are executed based on what? value of the property we sell and buy, outstanding mortgage or based on the equity?
- How Much Do I Have To Reinvest to pay no tax?
- Who is the Qualified Intermediary and what’s his role in 1031 exchange?
- At what point QI should be introduced to the transaction?
- What are the types of 1031 exchange? Simultaneous, Delayed, Reverse and Improvement Exchanges
- Is it ok to buy an interest in replacement property as part of 1031 exchange? Delaware Statutory Trust DSTs?
If you need help selling your investment property and purchasing a new one as part of 1031 exchange, call me at 571-271-6604 to talk about the details.
To reach Bill Horan check out his web page https://www.1031.us/