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*The following is for informational purposes. We highly recommend that you consult with a tax professional*
So what is 1031? Generally stated, a 1031 exchange (also called a like-kind exchange or a Starker) is an exchange of one investment asset property for another. Although most exchanges are taxable as sales, if you come within 1031, you’ll either have no tax or limited tax due at the time of the exchange.
Here is the IRS definition: Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related Federal income tax liability on the exchange of certain types of property. In 1979, this treatment was expanded by the courts to include non-simultaneous sale and purchase of real estate, a process sometimes called a Starker exchange.
Requirements for IRC Section 1031 Exchanges
TIMELINE REQUIREMENTS
Measured from when the relinquished property closes, the Exchangor has 45 days to nominate (identify) potential replacement properties and 180 days to acquire the replacement property. The exchange is completed in 180 days, not 45 days plus 180 days.
IDENTIFICATION RULES
As an Exchangor, you are required to provide in writing an “unambiguous description” of the potential replacement property prior to midnight on the 45th day (after the close of the first relinquished property). A legal description or property address will suffice. If you wish to identify or purchase multiple properties, you must follow one of the following guidelines:
Basic Timeline:
Day 1: You have closed on the sale of your investment property.
Day 45: Deadline for identifying up to three like-kind properties for purchase.
Day 180: Deadline to complete the purchase of the new property(s) in order to qualify for a 1031 Exchange.
You have six months from the day you closed escrow on the sale of your original property to successfully meet the 1031 Exchange requirement for the IRS.
1031 Facilitators in Washington:
Delaware Statutory Trust Info (preferred vendors):
Exceptionally well maintained downtown Issaquah duplex located in quiet residential area, perfect owner occupied property or first time investment. Neighborhood located a...
Listing courtesy of Skyline Properties, Inc..
In the heart of Shoreline in residential neighborhood, 2 blocks to city park and baseball diamond and 2 blocks to High School. Close to shopping and transportation and th...
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Fantastic Investment Opportunity for this conveniently located Renton triplex perched atop Benson Hill with views from each unit. All units have been rehabbed/remodeled,...
Listing courtesy of Cascade Properties & Invest..
Attention all types of buyers! Investors, grab this opportunity to add this beautifully renovated duplex to your investment portfolio or buyers who’ve been looking for a ...
Listing courtesy of Horizon Real Estate.
Property is Unpriced at this time. Please reach out to Listing Agent. Great opportunity to own a 35 unit property in the heart of Ballard. With substantial rent upside (2...
Listing courtesy of Kidder Mathews.
21-Units, Fully-Renovated w/ High-end Finishes. Ability to Raise Rents 10%. Future Redevelopment Play w/ Exceptional Views. Excellent Option for an Exchange Buyer.
Listing courtesy of Kidder Mathews.
Located in Queen Anne, Dravus Court is 2 blocks from SPU, walking distance from Fremont’s core & boasts an easy commute to SLU & Downtown with their employment/entertainm...
Listing courtesy of Kidder Mathews.
Great cash flow and well maintained Fourplex located near downtown Enumclaw. Each unit has 2 bedrooms, 1.5 bathrooms, over 1,000 square feet each unit. Every unit has k...
Listing courtesy of TheMLSonline.com.
Great cash flow and well maintained Fourplex located near downtown Enumclaw. Each unit has 2 bedrooms, 1.5 bathrooms, over 1,000 square feet each unit. Every unit has k...
Listing courtesy of TheMLSonline.com.
Incredible Opportunity on the Green Lakes eastside. 1 short blk from rec center & library, on major bus line. Currently used as duplex, both units occupied. Do Not Distu...
Listing courtesy of Mal & Seitz.
A rare investment opportunity in the heart of Bellevue! Each unit has 3BR, 1.5 bath, light filled, spacious living room overlooking level private backyard. 1 car garage w...
Listing courtesy of RE/MAX Northwest Realtors.
Location, Location, Location! Must see this duplex (2538 Dexter Ave N) and single-family (2540 Dexter Ave N) residences with rare sweeping views of South Lake Union. The...
Listing courtesy of John L. Scott, Inc..
Beautifully maintained and renovated home 3 blocks from Greenlake. Main floor has; living room, dining room, spacious kitchen, full bath and primary bedroom. Lower level ...
Listing courtesy of Sterling Johnston Real Estate.
East Union Building is a beautiful mixed-use building beaming with timeless character. It features 4 large residential units and 4 ground floor retail spaces that is 100...
Listing courtesy of Kidder Mathews.
4plex opportunity! Ideal location in the heart of Seattle's thriving Ballard neighborhood! Pride of ownership, low maintenance & close to restaurants/shopping make for a ...
Listing courtesy of Toril Sells Houses Team.
ATTN investors! Wonderful 4 plex in popular Fremont with rents under current value. This well looked after fully rented multi family building is centrally located with e...
Listing courtesy of Coldwell Banker Danforth.
No Interior Inspection w/Signed PSA.Please do not go on property or bother or question the tenants.Brick 4-plex in Prime Beacon Hill Location on a Soundview 6500 LR2(M) l...
Listing courtesy of Windermere Real Estate Co..
Whether you are looking for a performing investment property, a home with a separate unit to offset your mortgage or a home with the ability to have a separate home offic...
Listing courtesy of eXp Realty.
Seattle’s Windermere Circle, an enclave of iconic upscale, mid-century, multi-family properties. Superior construction is evident throughout. Strong tenant pool with Chi...
Listing courtesy of Windermere Real Estate Co..
Income producing 4-plex in prime Fairwood location- close to shopping, library and more! This property has a solid rental history and has been well maintained through the...
Listing courtesy of Redfin.