Under section 1031 of the United States IRS code, a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property.
Southern Impression Homes does have, from time to time, properties that are a good fit for a 1031 Exchange.
Advantages of a 1031 Exchange:
- Preservation of equity
- Maximize return on investment
- Increased cash flow from larger properties
1031 Exchange Timeline
- Sell your existing property: The clock starts ticking the date escrow closes. Start looking for your replacement properties.
- Identify up to 3 replacement properties within 45 days of the close of escrow.
- Complete the purchase of your new properties. This should occur within 180 days of the close of escrow.