1031 Exchange - Explained

[Jason Foxx]

Hello All!

Quick question, I was explaining the 1031 Exchange to one of my friends and he had some questions for me that I couldn't answer.  Please help!

Is there a specific amount of time that one must own/hold a property before being able to use a 1031 exchange?

Are there different rules applied in each state?

How long after selling a property do you have to reinvest it with the 1031 exchange?

Thank you for your help!

[Kyle Kadish]

@Jason Foxx

Question 2: 1031 is a federal law, however a couple of states will tax the gains if you complete the exchange through purchase in another state. For example, a seller owns in Pennslyvania, and exchanges for a property in Florida; they would owe gains tax in PA.

Question 3: replacement property must be identified by day 45, and possession taken by day 180 (sale date being day 0).