No. The beauty of a 1031 exchange allows you to sell your relinquished property to a person, while searching for another investment with someone unrelated to your first property.

If at anytime after a closing the exchanger holds the funds, it is too late for an exchange. Taxes must be paid on those funds.

Absolutely not! Anyone owning investment property with a market value greater than its adjusted basis should consider a 1031 exchange to grow your personal wealth.

Frequently Asked Questions

All real property is like-kind to other real property, but personal property like-kind requirements do have some restrictions.

Does Like-Kind mean I have to exchange the same type of property, such as condo for condo?

Are 1031 exchanges just for big investors?

If I’ve already closed on one property and have the money in my account. Can I still do an exchange?

Do I really have to swap my property with another investor?

In order to qualify as a fully tax deferred exchange, the investor must meet two specific requirements: 1. Reinvest the entire net equity of the property that is sold into one or more replacement properties, and 2. Acquire one or more replacement properties having the same or greater amount of debt as the replacement property. (An exception to the second requirement is that an exchanger can offset a reduction in debt on the new property by adding cash to the replacement property closing.)

Do I have to reinvest all of the proceeds of the sale of my property?

To contact us:

Phone: 405-418-2103 Oklahoma              361– 949-8833 Texas

Fax: 405-842-0079

E-mail: cbarnes@gulfcoast1031.com       pcarlisle@gulfcoast1031.com