Address Search

1031 Exchange Information

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:

  • Identify up to three properties of any value with the intent of purchasing at least one.
  • Identify more than three properties with an aggregate value that does not exceed 200% of the market value of the relinquished property.
  • Identify more than three properties with an aggregate value exceeding 200% of the relinquished property, knowing that 95% of the market value of all properties identified must be acquired.
  • A submitted purchase agreement is considered a sufficient identification.
  • Any properties purchased and closed within the 45-day time period qualifies as an identification.

 

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):

 

 

Newest Puget Sound Area Multifamily Property Listings

302 10th Avenue E, Seattle image
302 10th Avenue E, Seattle $2,595,000

The Baird is full of character and charming details. This offering includes eight large 1BD/1BTH units that range from 650 to 800 square feet. This Capitol Hill property ...

  • 1882173 MLS
  • ACTIVE Status
Courtesy of Paragon Real Estate Advisors

Listing courtesy of Paragon Real Estate Advisors.

1628 Dexter Avenue N, Seattle image
1628 Dexter Avenue N, Seattle $2,975,000

Amazing income producing property in a perfect Lake Union location. (3 units—two commercial spaces at ground level and an upper floor unit that can be used as office, a t...

  • 1882284 MLS
  • ACTIVE Status
Courtesy of Lake & Company

Listing courtesy of Lake & Company.

3632 36th Avenue S, Seattle image
3632 36th Avenue S, Seattle — york add $1,050,000

LOOKING FOR A MONEY MAKER? You can live on one unit and rent the other unit to pay for the property. Tons of potential. So many possibilities, close to parks in a gre...

  • 1881477 MLS
  • ACTIVE Status
Courtesy of Fresh Look Real Estate

Listing courtesy of Fresh Look Real Estate.

81 SW 2nd Street, Renton image
81 SW 2nd Street, Renton $1,299,000

Amazing one-of-a-kind design and layout. All three units are situated in the corner with minimum sharing of walls. Located on a quiet street, yet within walking distance ...

  • 1881406 MLS
  • ACTIVE Status
Courtesy of John L. Scott, Inc

Listing courtesy of John L. Scott, Inc.

4711 Whitman Avenue N, Seattle image
4711 Whitman Avenue N, Seattle $925,000

Charming 1910 Craftsman Duplex, less than 2 miles to Green Lake. Ideal for owner occupant or investor. Steady tenants, & low historical vacancy makes this the perfect tu...

  • 1881292 MLS
  • ACTIVE Status
Courtesy of eXp Realty

Listing courtesy of eXp Realty.

81 SW 2nd Street, Renton image
81 SW 2nd Street, Renton $1,299,000

Amazing one-of-a-kind design and layout. All three units are situated in the corner with minimum sharing of walls. Located on a quiet street, yet within walking distance ...

  • 1881250 MLS
  • ACTIVE Status
Courtesy of John L. Scott, Inc

Listing courtesy of John L. Scott, Inc.

2547 Warner Avenue, Enumclaw image
2547 Warner Avenue, Enumclaw $1,200,000

Great cash flowing Fourplex in the heart of Enumclaw! Building in great condition with brand new exterior paint. Four units across two stories -- two single level units, ...

  • 1879767 MLS
  • ACTIVE Status
Courtesy of Coldwell Banker Bain

Listing courtesy of Coldwell Banker Bain.

7151 Fauntleroy Way SW, Seattle image
7151 Fauntleroy Way SW, Seattle $1,350,000

Fabulous location for this fully remodeled triplex that is within a stone throw of Lincoln Park. Updates include all new electric, plumbing, hot water tanks, lighting, f...

  • 1876779 MLS
  • ACTIVE Status
Courtesy of Pellego, Inc.

Listing courtesy of Pellego, Inc..

516 E Denny Way, Seattle image
516 E Denny Way, Seattle — Pontius 2nd Add Supl $1,368,000

Investor alert! Turn key income property. Rare adjoining 2 parcels at the heart of Capitol Hill (check MLS#1877047). MR Zoning, great potential for upgrade or multi-unit ...

  • 1877055 MLS
  • ACTIVE Status
Courtesy of Keller Williams Rlty Bellevue

Listing courtesy of Keller Williams Rlty Bellevue.

514 E Denny Way, Seattle image
514 E Denny Way, Seattle — Pontius 2nd Add Supl $1,598,800

Investor alert! Turn key income property. Rare adjoining 2 parcels at the heart of Capitol Hill (check MLS#1877055). MR Zoning, great potential for upgrade or multi-unit ...

  • 1877047 MLS
  • ACTIVE Status
Courtesy of Keller Williams Rlty Bellevue

Listing courtesy of Keller Williams Rlty Bellevue.

8541 Phinney Avenue N, Seattle image
8541 Phinney Avenue N, Seattle $3,880,000

The James Bon Apartments is a 13-unit apartment complex (12 plus one-nonconforming studio) located in the popular urban hub of 85th and Greenwood. The property has a lar...

  • 1876199 MLS
  • ACTIVE Status
Courtesy of Paragon Real Estate Advisors

Listing courtesy of Paragon Real Estate Advisors.

8613 Roosevelt Way NE, Seattle image
8613 Roosevelt Way NE, Seattle $1,200,000

Top Seattle/Maple Leaf location across from the ML Reservoir Park steps from Cloud City Coffee. Recently completed Feasibility Study by architect. 3 development options.C...

  • 1876298 MLS
  • ACTIVE Status
Courtesy of John L. Scott, Inc.

Listing courtesy of John L. Scott, Inc..

4301 SW Myrtle Street, Seattle image
4301 SW Myrtle Street, Seattle $2,500,000

Paragon Real Estate Advisors are proud to present the Eaton Manor. This eight-unit apartment building consisting of two studio units, three one-bedroom one-bathroom unit...

  • 1875410 MLS
  • ACTIVE Status
Courtesy of Paragon Real Estate Advisors

Listing courtesy of Paragon Real Estate Advisors.

2411 NW 57th Street, Seattle image
2411 NW 57th Street, Seattle — GILMAN PARK ADD PLAT $1,995,000

Introducing the Kari Apartments. Classic, renovated six unit in the heart of Ballard. Large units: Two two bedrooms, with fireplaces; Four one bedrooms. Several units a...

  • 1875360 MLS
  • ACTIVE Status
Courtesy of Real Property Associates

Listing courtesy of Real Property Associates.

12315 35th Street NE, Seattle image
12315 35th Street NE, Seattle $995,000

This mid-century building offers large units with in-unit laundry and substantial upside through renovations and rent increases. The building is located on a 5,300SF lot ...

  • 1871474 MLS
  • ACTIVE Status
Courtesy of Paragon Real Estate Advisors

Listing courtesy of Paragon Real Estate Advisors.

8523 23rd Avenue NE Unit #1-4, Seattle image
8523 23rd Avenue NE Unit #1-4, Seattle $1,995,000

Opportunity knocks in Wedgewood. Well maintained 4 plex with opportunity. Market rents total $9,100/mo+, =4.4%+ CAP. Two, 2 bedroom / 1 bath flats & Two, 2 bedroom 1.5 ba...

  • 1873622 MLS
  • ACTIVE Status
Courtesy of KW Everett

Listing courtesy of KW Everett.

4551 5th Avenue NE, Seattle image
4551 5th Avenue NE, Seattle — 15/59 $980,000

Attention Investors: Stellar location & opportunity with 1900's Charm! An Occupied Duplex w/a long history of steady income being sold AS IS. This house/duplex sits next...

  • 1871495 MLS
  • ACTIVE Status
Courtesy of Windermere R.E. Shoreline

Listing courtesy of Windermere R.E. Shoreline.

4750 University Way NE, Seattle image
4750 University Way NE, Seattle — University Heights Add $6,280,000 ▲

Unique investment/redevelopment opportunity in prime University District location revitalized by new light rail 2 blocks away. Striking 12000 SF mid-century mixed-use bui...

  • 1872358 MLS
  • ACTIVE Status
Courtesy of Windermere Real Estate Co.

Listing courtesy of Windermere Real Estate Co..

9151 45th Avenue SW, Seattle image
9151 45th Avenue SW, Seattle $2,600,000

Property includes 2 side by side 4 plexes for a total of 8 units- 13,271 sq. ft of land and 9180 total sq.ft of buildings. Great Legacy property that has been in the sam...

  • 1871022 MLS
  • ACTIVE Status
Courtesy of John L. Scott Westwood

Listing courtesy of John L. Scott Westwood.

1517 1521 1525 44th Avenue SW, Seattle image
1517 1521 1525 44th Avenue SW, Seattle $3,500,000

First time on market since 1964. Very unique property in North Admiral. Three townhouse style duplex's. Each duplex is on its own lot with individual tax parcel number...

  • 1868142 MLS
  • ACTIVE Status
Courtesy of John L. Scott Westwood

Listing courtesy of John L. Scott Westwood.

The database information herein is provided from and copyrighted by the Northwest Multiple Listing Service (NWMLS). NWMLS data may not be reproduced or redistributed and is only for people viewing this site. All information provided is deemed reliable but is not guaranteed and should be independently verified. All properties are subject to prior sale or withdrawal. All rights are reserved by copyright.

Address Search

Exclusive Listings / Past Sales

Resources

Seattle

North King County

South King County

East King County

Pierce County

Snohomish County

Click Here to Create a Custom Report

Financing

Apply Now

Recent Blog Posts