Referral for 1031 EAT

[Wilfred Diaz]

Hello Everybody, I will be selling my current home and purchasing a new home(that will need some remodeling) with the hopes of using a 1031 exchange. I would like to know what this process is like. Here are my details. I will be netting approximately $450k cash from the sale of my primary residence. I intend to purchase my new home for $680k, but intend to do approx $30k in remodeling. How can I use some of the cash from the sale of primary residence via the 1031? If possible, I plan on selling my residence first and living in the new home during the remodel, which I plan will take 2 months. How would this transaction work and how much would it cost to use an EAT? Thanks in advance!

[Robert Hetsler]

First, let me say that if you resided in your home above 2 out of the last 5 years, assuming it was not purchased from 1031 Proceeds as the rules are a little different, I do not believe you need a 1031 and since it was your primary residence at the time of sale and you are intending to buy/build a primary residence, you would not qualify for the exchange anyway.  It is well settled that 1031 Exchanges are strictly for investment property held for investment.  Check out section 121 of the IRS code as you might be exempt form 250K or 500K of that sale, depending on the facts and if you are married.

Of course, if the facts are a little different than you  described above and did involve investment property, I would be able to assist.  This also assumes there is no need to engage in an "Improvement Exchange" because of the rehabilitation costs. It would not be necessary if you are purchasing up more than enough to cover the 30,000 in rehab costs. Of course, I can just as well.

Alternatively, @Dave Foster and @Bill Exeter are both equally as qualified and reputable.  I am not sure of their fee structure but I charge $775 for everything you described above, assuming it was investment property and otherwise qualified, so they could be less or more but the best thing is to deal with someone reputable by checking insurance, experience and references all of which I know the two above can provide easily provide.   You can email me directly and I am happy to provide a ton of references . There is enough business for all three of us so I think we all speak highly of the other one because I know I do feel they are both more than qualified and I would use either of them and trust them with my money if I was the one engaging in an exchange.  Although @Dave Foster is a little funnier (in a very positive way!)  Just a joke!  Good Luck.