Types of 1031 Exchanges
One of the greatest things about 1031 Exchanges is their flexibility. With 4 different types of Exchanges, they can fit a wide variety of investment situations on like-kind property to meet your buying timeline and needs while offering the same great tax deferral benefits. Click on one of the 4 types of Exchanges or Like-Kind Property below or to learn more:
Delayed Exchanges
Sell First, Buy Later
As its name implies, a Delayed Exchange is when you choose to delay purchasing a new property until after you’ve sold your current property. You then have 45 days to find a new replacement property.
Reverse Exchanges
Buy First, Sell Later
In a Reverse Exchange, you are able to buy property first before relinquishing your current property. This is a great option if you find an ideal investment property and don’t want to risk losing it while you wait for your current property to sell.
Improvement Exchanges
Improve Property Purchased
Improvement Exchanges are a great choice if you can’t find the kind of replacement property you’re looking for. It gives you 180 days to renovate or build a property so you can make improvements and still defer taxes.
Blended Exchanges
Combination of Any Exchange Type
In a Blended Exchange, you are able to mix any of the 3 other types of exchanges (delayed, reverse and improvement), giving you even greater flexibility. This is especially helpful when more than two properties are involved in your Exchange.
Like-Kind Property
The Backbone of 1031 Exchanges
Like-kind refers to the same nature of investment. In 1031 Exchanges, this is any property held for productive use in trade or business, like single family rentals, apartment buildings, office buildings, raw land and more.
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