1031 Exchanges in Massachusetts

[Erasmo Alvarenga]

Greetings everyone.

I’m looking to get educated on 1031 Exchanges in Massachusetts. I want to know it all, everything from the basics to the advanced teachings about the subject. Can’t anyone help ?

[Sean Ross]

@Erasmo Alvarenga, thanks for the broad latitude here.  Let me start by saying "You don't want, or need, to know it all."  I'd advise you start with the practical basics rather than the technical ones, then work with someone who does know the technical details and apply them to your specific situation.  

The 1031 Law (speaking practically)
These rules apply to any exchange:

• Must complete within 180 calendar days of the sale of your relinquished property
  
• Must identify up to 3 replacement properties within 45 days
• Only complete tax deferral if the final value of the replacement property is worth at least as much as your net sale price for the relinquished property.
• If you trade down in value, the difference is taxable
• Keep the same taxpayer across properties
• You can exchange into (and out of) any state and many US territories
• There are lots of different assets that qualify as valid replacement targets in a 1031, so think broadly

I'll stop there and see if you have additional questions or want to expand on any point.