1031 Exchange California

Specialist: Peter Maselli

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Are you Interested in Deferring Taxes with a 1031 Exchange California

Defer taxes, increase their purchasing power, and continue growing their investment portfolio without an immediate tax burden.

Qualified Use Requirement: 1031 Exchange Rules

The properties involved in the exchange must be held for investment or for use in a trade or business. They cannot be personal residences, though vacation homes may qualify under certain conditions if they meet specific use criteria.

Types of 1031 Exchanges

  • Simultaneous Exchange: The exchange of properties happens at the same time.

  • Delayed Exchange: The most common type, where the sale of the relinquished property and the purchase of the replacement property happen at different times, within the 45/180-day time limits.

  • Reverse Exchange: The replacement property is acquired before the relinquished property is sold.

  • Improvement Exchange: Allows the use of exchange funds to improve the replacement property, provided the improvements are completed within the 180-day period.

1031 Rules:

  • Simultaneous Exchange: The exchange of properties happens at the same time.

  • Delayed Exchange: The most common type, where the sale of the relinquished property and the purchase of the replacement property happen at different times, within the 45/180-day time limits.

  • Reverse Exchange: The replacement property is acquired before the relinquished property is sold.

  • Improvement Exchange: Allows the use of exchange funds to improve the replacement property, provided the improvements are completed within the 180-day period.

Frequently Asked Questions

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