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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):
Attention investors! Turnkey duplex, perfect for 1031 exchange buyers. Convenient North Delridge location, easy commute to downtown, I5/I90. Each unit has 2 bedrooms, a f...
Listing courtesy of RE/MAX Metro Realty, Inc..
Location, location, location!! Ballard 7-plex with strong income stream offered at 5.17% cap rate. Property is zoned NC255 which allows for up to 55’ of development pot...
Listing courtesy of Windermere Real Estate Co..
Excellent investment opportunity in solid condition. Turnkey 4-plex in the Panther Lake complex with updated roof & double pane windows. Apartment style units with 1 bed...
Listing courtesy of COMPASS.
Modernized cash flowing property!! Quartz counters, recessed lighting & all new flooring in all units! Maintained meticulously; a hard to find, private, condo-style build...
Listing courtesy of Global Real Estate Group.
The views from each floor are truly astounding. Scan for Orca's. Watch the ferry lights drift across from Vashon. Sunsets? Oh yes... every night. Walk along the beach pic...
Listing courtesy of Windermere R E Mount Baker.
Awesome opportunity to own this income generating 4-plex in the heart of highly sought after Ballard! Low maintenance & close to restaurants & shopping make this a desira...
Listing courtesy of RE/MAX Elite.
Amazing Investment Property, it's a single-family home but lives like a duplex. Remodeled mid-century on a magical lot. Fresh beachy Scandinavian vibe. Each level feature...
Listing courtesy of Windermere RE/Capitol Hill,Inc.
The Woodland Place Apartments offers investors the opportunity to own a well maintained building within blocks of Fremont’s commercial core. Located on the corner of Fre...
Listing courtesy of Westlake Associates, Inc..
Look no further than this handsome home in Highline! First impressions are everything and the fresh exterior paint really enhances the curb appeal. Step foot inside to fi...
Listing courtesy of Windermere Real Estate/East.
Well maintained 4-unit apartment building located in Seattle’s desirable Fremont neighborhood. Units are in rent ready condition. Currently, all units are being operated ...
Listing courtesy of Paragon Real Estate Advisors.
: 6-unit turn key apartment in Georgetown. Jackson went through a full studs out renovation with new interiors, systems, roof and windows. This is a legacy asset with tru...
Listing courtesy of Kidder Mathews.
Don’t miss this opportunity to purchase a great long term investment duplex in the heart of Shoreline. Each unit features custom kitchen cabinets w/tile backsplash, main ...
Listing courtesy of Coldwell Banker Bain.
Well-located at the corner of Yale Ave E and E Boston Street in the Eastlake neighborhood, this property at 93 E Boston is ready for the vision of new owner-ship. On th...
Listing courtesy of Westlake Associates, Inc..
Excellent and rare opportunity to own income earning multiplex(es) in growing community of Carnation. Three 4-plexes side by side. Seller prefers to sell all 3 togeth...
Listing courtesy of COMPASS.
Stunning Luxury Duplex! Nestled into nature, From the first step inside you're welcomed by soaring vaulted ceilings, lavish trim & hardwoods. ENSUITES ON MAIN w/walk in c...
Listing courtesy of Keller Williams Realty Bothell.
4-plex with updated kitchens, bathrooms & flooring. Close to Seatac Airport and I5, Monthly Income from Coin operated laundry . Long time tenants with very little tu...
Listing courtesy of Realtyall.com.
Options galore! Welcome to this ideally located and fully remodeled home. This unique home offers 2800 sqft of living space where you can live upstairs with 3 bed 2 bath ...
Listing courtesy of Globenex Realty.
Excellent location! North Seattle 33 units that can be converted to Multi-Family. Highway 99, high traffice, highest and best use is Multi-Family Apartment. Close to Seat...
Listing courtesy of Better Properties NW.
Great Hwy 99 Location! Excellent opportunity 22 units Motel that can be converted to a Multi-Family in City of Shoreline. High traffic. Highest and best use is probably...
Listing courtesy of Better Properties NW.
Don't miss your chance to discover all of the opportunities this one-of-a-kind home in Des Moines has to offer! Currently split into three separate living spaces, this ho...
Listing courtesy of John L. Scott Des Moines.