1031 basics, where to start?

[Bryan Cork]

I want to start learning the ins and outs of 1031’s and I expected to find a sticky thread with and article posted but didn’t see one, so where would you all suggest that I start?

[Erin Spradlin]

Hey Bryan-

That's a great question, and one I just read about in Dave Greene's excellent Long-Distance Real Estate Investing book. On a high level, here are the basics: 

• it's a section in the tax code
• allows you to avoid paying capital gains taxes on specific investments
• Move profits from one property into another
• Like kind properties same in nature or character
• 45 days to id new properties to close on
• 180 days to close on an identified property
• Avoid taking possession of the money

Talk to your lender (and your CPA) about this as they can advise you on the rules for a 1031 exchange. I've also included links for more info on 1031s. Good luck! 

What is a 1031 Exchange?

FAQs about 1031 Exchanges