Attorneys

1031 Exchange FAQs

• Q: Can I Buy A New Property Before Selling My Old One?
  A: Yes, you can buy a new property before selling the old property and still qualify ­ it's called a "reverse" exchange. A qualified intermediary takes title to the … More
• Q: Can I Get Money Out Of The Exchange Tax Free?
  A: Yes, one way is to complete the exchange first and then refinance the new property.
• Q: Can I Use My Ira In Conjunction With A 1031 Exchange?
  A: Yes, if you do it right. Using an IRA for real estate requires a special Self­Directed IRA. Your Self­Directed IRA at Charles Schwab or Fidelity does NOT … More
• Q: Can I Buy More Than One Piece Of Property Tax Free?
  A: Yes, you can acquire any number of replacement properties.
• Q: Can I Exchange Several Smaller Properties For A Larger One?
  A: Yes, you can sell any number of smaller properties and trade up to a larger one.
• Q: How Do I Exchange Into A Larger Property (Trade Up)?
  A: You trade up by getting a bigger loan on the new property, or adding cash, or equities in other properties, or notes carried back from the sale of other properties, … More
• Q: Can I Refinance Without Blowing The Tax Free Exchange?
  A: Yes, you can refinance the property you are selling before you exchange, or refinance the property you are buying after you exchange, and the proceeds are … More
• Q: Can I Carry Back A Loan On The Property Im Selling And Still Have A Tax Free Exchange?
  A: Yes, the payments you receive are taxed as you get them, on an installment sale basis. The balance of your equity is exchanged tax free.
• Q: I Have Already Sold My Property. Can I Still Do An Exchange?
  A: Yes, provided your sale has not closed yet, your taxable sale can be turned into a tax free exchange with some simple paperwork.