Which of the following is a requirement regarding replacement property for a deferred like kind exchange under IRC 1031?

To defer all taxable gain, a property owner must first reinvest all the equity in the relinquished property into the replacement property. Second, the purchase price of the property acquired must equal or exceed the sale price of the relinquished property.

How long do you have to wait to do a 1031 exchange?

What are the time requirements in an exchange? From the time of closing on the relinquished property, the investor has 45 days to nominate potential replacement properties and a total of 180 days from closing to acquire the replacement property.

What qualifies as replacement property?

Replacement property is any property that is received in place of property that has been destroyed, lost, or stolen. Replacement property is often insured by a casualty-insurance carrier.

Which of these is the timeframe within which the replacement property must be acquired?

within 45 days
The replacement property must be identified within 45 days of the transfer of the first relinquished property. This 45-day rule may not be extended even if the 45th day should happen to fall on a Saturday, Sunday or legal holiday.

What is the 121 exclusion?

A Section 121 Exclusion is an Internal Revenue Service rule that allows you to exclude from taxable income a gain of up to $250,000 from the sale of your principal residence. A couple filing a joint return gets to exclude up to $500,000.

Can you 1031 into a primary residence?

A 1031 exchange generally only involves investment properties. Your primary residence isn’t typically eligible for a 1031 exchange. Even a second home that you live in some of the time is ineligible if you don’t treat it as an investment property for tax purposes.

Can you 1031 your primary residence?

Is the 1031 exchange going away?

Members of the House Ways and Means committee sent out letters recently to their constituents letting them know that Section 1031 of the Tax Code was safe. While the bill has yet to be finalized and voted on, we can be assured that the Tax Deferred Exchange is safe, for now at least.