1031 Exchange into multiple properties?

[Christina Galdieri]

Hi All, 

I have an investment property in NJ that was my second home when I lived in PA. I now live in FL and am thinking about selling the NJ property (PA already sold). Can I 1031 exchange into multiple properties in FL or just 1? do I need someone in NJ or FL to do this? 

Thanks!

[Daniel Osman]

Yes, you can use a 1031 exchange to acquire multiple replacement properties in Florida from the sale of your investment property in New Jersey. It does not have to be a one to one exchange or a asset class to asset class. Meaning you can sell an apartment and purchase an office building and it's a valid exchange. 

Regarding the location of the Qualified Intermediary (QI), it doesn't matter whether they are based in New Jersey, Florida, or elsewhere. The key is to work with a reputable QI who is experienced in handling 1031 exchanges. The QI will facilitate the transaction by holding the proceeds from the sale of your New Jersey property and using them to acquire the replacement properties in Florida.

Make sure to follow the 1031 exchange timelines: you must identify potential replacement properties within 45 days of selling your New Jersey property and complete the acquisition of the replacement properties within 180 days.