Here are the Top Ten 1031 Exchange Misconceptions
Thank you First American Exchange for the information!
1. Like-kind means I must exchange the same type of property, such as apartment building for apartment building.
All real property is like-kind to other real property, but personal property like-kind requirements do have some restrictions. Real property and personal property are not like-kind to one another. To read more about like-kind real estate, click here.
2. My attorney can handle this for me.
Not if your attorney has provided you any non-exchange related legal services within the two-year period prior to the exchange. Click here to read more about qualified and disqualified parties.
3. I must literally “swap” my property with another investor.
No. A 1031 exchange allows you to sell your relinquished property and purchase replacement property from a third party. Watch a short video on the basic process of a 1031 exchange.
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