Like-Kind (1031) Exchanges

The Internal Revenue Code (IRC) Section 1031 allows like-kind exchanges for investors to defer taxes when exchanging one piece of property for another. This is not a tax “loophole,” but is a deferral. The owner pays tax on the property when it is ultimately sold. These 1031 exchanges are only allowed for investment or business property, but in some cases can be used for properties such as vacation rental homes. Timing is very important, as a “replacement property” must be designated within 45 days from the sale of your property. In addition, you must close escrow on the new property within six months (180 days) of designating it. Here at Exclusive Arizona Buyers Agents, we are experienced at handling your 1031 Like Kind transactions. We can help you identify your replacement properties and then successfully close escrow within the required timeframes.