If you are an investor, you should know the benefits of 1031 Exchange. 

1. What is a 1031 exchange

It can be applied to an investment property to replace another investment property. 

When replacing an investment property, you can use 1031 Exchange to enjoy the benefits of tax defer. 

Please note that If the property is a primary residence, 1031 Exchange is not applicable.

2. Strict requirement of schedules 

1031 Exchange is a benefit, but it is accompanied by strict requirements of schedules. 

So be sure to keep in mind about three different timelines. 

First, let the buyer/ seller and escrow company know you need a 1031 Exchange included in Escrow.

Second, after Escrow Close, within 45 days, a list of three replacement properties needs to be provided for 1031 Exchange.

Third, within 180 days, transactions need to be completed in three listed properties.

3. The highlights of 1031 Exchange 

1. The tax can be deferred to the next house to take the benefits of deferred payment.
2. The exchange of investment properties can be extended all the time. That is to say, as long as the 1031 exchange is used all the time, the benefit of tax deferred can be applied all the time.

The above is the basic information regarding 1031 Exchange. If you have tax related questions, please consult with your CPA. 

If you have any questions or demand about selling or purchasing homes, please contact me.