What This Includes

Our 1031 Exchange Basics service provides educational resources on 1031 exchange fundamentals and requirements. This service is designed for property owners who want to understand the basic principles, rules, and processes involved in 1031 exchanges before starting their transactions.

We provide comprehensive education on IRS Revenue Procedure 2000-37, exchange timelines, identification rules, and compliance requirements. 1031 exchange basics education is essential for investors to understand the process and avoid common mistakes. Our educational resources cover exchange fundamentals, timeline requirements, and basic compliance principles.

Our 1031 exchange basics education includes timeline explanation, identification rule overview, qualified intermediary requirements, and basic compliance education. We help Albuquerque, NM investors understand the fundamental principles of exchanges and prepare for the process. Our education covers forward exchanges, basic exchange structures, and fundamental requirements.

We provide educational resources that help investors make informed decisions. Our team ensures investors understand the basics before proceeding with exchanges and can identify when professional assistance is needed.

FAQs about 1031 Exchange Basics

What is a 1031 exchange and how does it work?

A 1031 exchange allows Albuquerque, NM investors to defer capital gains taxes by reinvesting proceeds from sold property into like-kind replacement property. The exchange must be completed within 180 days and follow IRS Revenue Procedure 2000-37 requirements. We help Albuquerque, NM investors understand the basic mechanics of 1031 exchanges and determine if they qualify for this tax-deferral strategy.

What are the basic timeline requirements for a 1031 exchange?

The basic 1031 exchange timeline for Albuquerque, NM investors requires identifying replacement properties within 45 days of closing on the relinquished property, and completing all acquisitions within 180 days of that same closing date. These are strict deadlines that cannot be extended. We help Albuquerque, NM investors understand timeline requirements and plan accordingly.

What are the identification rules for 1031 exchanges?

The three basic identification rules for Albuquerque, NM investors are: three-property rule (identify up to three properties of any value), 200-percent rule (identify any number of properties as long as total value doesn't exceed 200% of relinquished property value), and 95-percent rule (acquire at least 95% of identified properties' total value). We help Albuquerque, NM investors understand these rules and choose the appropriate one for their situation.

What is a qualified intermediary and why do I need one?

A qualified intermediary is a bonded third party required by IRS rules to facilitate 1031 exchanges by holding exchange funds and preparing documentation. Albuquerque, NM investors cannot use their own advisors as qualified intermediaries. We help Albuquerque, NM investors understand the role of qualified intermediaries and why they are essential for IRS compliance.

What properties qualify for 1031 exchanges?

Properties that qualify for 1031 exchanges must be held for productive use in trade or business or for investment purposes. Both relinquished and replacement properties must be real estate. Personal residences and property held primarily for sale typically do not qualify. We help Albuquerque, NM investors understand property qualification requirements.

1031 Exchange Basics