Expand into Real Estate Markets Nationwide

Under the “like-kind” requirements of Section 1031, a taxpayer not only has flexibility in the type of properties that are sold and the purchased through the 1031, but also their location.

Property sold and exchanged can be replaced with property in any other state in the U.S. A taxpayer doing a 1031 Exchange can purchase replacement property anywhere within the 50 states, including territories like the U.S. Virgin Islands, Guam, and the Northern Mariana Islands. Real estate located outside of the U.S. in any other area is not like-kind and will not give the taxpayer the tax deferral they are looking for.

For more information, please reach out to your tax professional for specific questions or contact the specialists here at Security 1st Exchange for assistance.

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Here at Security 1st Exchange we focus on your goals utilizing a 1031 Exchange. When you have questions, we have answers. Get started today.

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Basics of a 1031 Exchange

To structure a 1031 Exchange property under I.R.C. Section 1031, there are some basic requirements that a taxpayer must meet.

Closing Costs

There are always questions from taxpayers as to which closing costs can be paid with sales proceeds when doing a 1031 Exchange. This article provides some overall guidance on the topic.

1031 Disclosure

The IRS requires that if any party to a transaction wishes to do a 1031 Exchange, all parties to the closing are made aware. The best place to do this is in the purchase and sale agreement.

Identification Rules

Section 1031 requires that a taxpayer doing an exchange identify their replacement property while following certain rules.