Thinking of selling? CLICK HERE to find out what your multi-family investment property could sell for in today's market
*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):
QUEEN ANNE/MAGNOLIA MULTI-PLEX ALERT! Great investment opportunity w/this 5-unit building that has HUGE rental income upside. Rents currently VERY LOW for the area. First...
Listing courtesy of Pacific Properties.
Investor Alert!! Great opportunity for investment in this triplex in the best Wallingford location. Mt. Rainier and city views and sited on an oversized 5100 square foot...
Listing courtesy of Windermere Real Estate Co..
Ideal live/work situation or rent while you create your vision for future potential! 2 storefronts, each with their own ½ bath, plus a one-bedroom apartment and a 2 bedro...
Listing courtesy of RE/MAX Northwest.
The Standard at Fremont is a 13-unit apartment gem nestled in the heart of Fremont. This timeless building features nine spacious one-bedroom apartments, each boasting 66...
Listing courtesy of Westlake Associates, Inc..
Tenant Occupied. Do not disturb Tenants. Generate instant income with this move-in ready 1922 Dutch Colonial duplex-style home located in the Queen Anne neighborhood. Con...
Listing courtesy of Redfin.
Classic brick built duplex providing an excellent investment opportunity in thriving Brighton neighborhood. Large units consisting of unit 6700: 2beds/1bath and 6702 4 be...
Listing courtesy of Real Residential.
Classic brick built duplex providing an excellent investment opportunity in thriving Brighton neighborhood. Large units consisting of unit 6708: 2beds/1bath and 6706 4 be...
Listing courtesy of Real Residential.
Welcome home to this charming 3-bed, 2-bath craftsman home on a quiet street. Whether you're an investor or someone seeking flexible living arrangements, this property pr...
Listing courtesy of Better Properties N. Proctor.
Fantastic opportunity to own a side-by-side, 2-Story Duplex in Seattle's sought after Wallingford neighborhood. Unit A: 2 Beds, Loft/Office + 1.5 baths. Unit B: 2 Beds + ...
Listing courtesy of Redfin.
Great investor opportunity in sought after Phinney Ridge to own this Grandfathered Tri-plex. Bring your toolbelt & turn this tri-plex into an income producing machine. ...
Listing courtesy of Windermere RE/South, Inc..
Extremely well-maintained 4-plex is a fantastic investment/income opportunity in a central Woodmont location! Good tenants; 3 out of the 4 units are rented. Each unit inc...
Listing courtesy of Agencyone Tacoma.
Located at the top of Queen Anne Hill just blocks from the vibrant commercial corridor of Queen Anne Avenue N, 1421 on Queen Anne is a charming, 1910-vintage classic bric...
Listing courtesy of Kidder Mathews.
Micro Unit Developers, Contractors, and Investors seize the opportunity in the highly coveted South Park area! This up-and-coming location offers fantastic walkability to...
Listing courtesy of Keller Williams North Seattle.
Well maintained craftsman style triplex centrally located in the desirable Beacon Hill neighborhood. Property includes an idyllic courtyard, expansive cedar deck with ter...
Listing courtesy of RE/MAX Eastside Brokers, Inc..
The Woodlaun Haus offers a diverse mix of one-bedroom, two-bedroom units and features one studio. This mostly renovated building with new cabinets, countertops, and floor...
Listing courtesy of Keller Williams North Seattle.
Excellent North Beacon Hill investment/Development site in an Opportunity Zone (LRM-2). Generous street frontage with original duplex and detached garage adjacent to unop...
Listing courtesy of Windermere Real Estate/East.
Lee & Associates NW Multifamily Team is pleased to present the Ballard 6. Situated just few blocks north of the main intersection of Ballard. The building has been well m...
Listing courtesy of Lee & Associates Commercial RE.
Legal Shoreline Triplex with townhouse style units on a large .27 acre lot! Zoned MUR-35 in 2033, long term tenants with recently vacated 1 bedroom/ 1 bath unit is perfe...
Listing courtesy of Specialty Real Estate Group.
Introducing a meticulously maintained seven-unit apartment building nestled in the heart of the city. Originally built in 1968, the subject property is a unique collectio...
Listing courtesy of Westlake Associates, Inc..
Located in the heart of Seattle’s vibrant Capitol Hill neighborhood is an extraordinary opportunity for investors seeking both current income and future potential. The Ea...
Listing courtesy of Westlake Associates, Inc..