1031 Exchange Case Studies

Real Life 1031 Exchanges

Are you wondering how a 1031 exchange might apply to your situation? Get some ideas by seeing what other exchangers have accomplished.

Partial 1031 Exchange - Residence and Investment Property

Sue is planning to sell five acres then buy a large home plus a quality rental property. See how her exchange facilitator structured the transaction to eliminate some of the capital gains taxes and defer the rest by treating portions of the sale differently. Read more…

Moving into 1031 Exchange Property

We're frequently asked, "Once I buy a residential property how long do I have to wait until I can move into it?" Kim didn't indent to move into her rental property but an unexpected layoff changed everything. Would Kim end up owing capital gains taxes?

Minimum Period to Own Exchanged Property

1031 Exchanges apply to property you intend to buy and hold, not to property you intend to resell. What happens if you sell your property quickly? See why Jack kept his tax deferred status but Bob didn't.

Keep Documentation for Tax Purposes

As with all tax issues, it's best to document your efforts on paper. For example, if you move into your property six months after your exchange it would be prudent to retain all the newspaper advertisements you ran, receipts, copies of checks, a photo of the house with a FOR RENT sign in the window or yard, a signed copy of a rental listing with a property management company, copies of any rental applications you took (noting your reason for not renting to the people), etc. Keep whatever you have.

Ask the Expert to find out how a 1031 exchange can be structured to help you defer taxes and achieve your asset accumulation goals.