1031 Exchanges

Contact Midland 1031 to start your exchange today

Getting Started

As soon as you realize that you may qualify for a 1031 exchange, contact a qualified intermediary (QI). Contact a QI before closing on your relinquished property. Doing this prevents you from missing the opportunity to enter an exchange. The QI will tell you if you qualify for an exchange and which type of exchange works best. There are several 1031 exchange options available to taxpayers, depending on their unique transactions. Here, we discuss the definition, rules, and situations that work best for each type of exchange.

Exchanges (whether standard or reverse/improvement) need advanced preparation. This preparation ensures adherence to regulatory requirements. This also gives all involved parties ample time to updates their documentation.

Midland 1031 is available to discuss your transaction with you. We review the 1031 exchange process step by step.

Ready to learn more? Contact us today! 239-333-1031

View case studies of Midland 1031 clients. See how others have leveraged a 1031 exchange for maximum return.

Types of 1031 Exchanges

Traditional Exchanges

Replacement Reverse

Forward Reverse Exchange

Improvement Exchange

Reverse Improvement Exchange

Defer huge taxes on capital gains using 1031 exchanges

1031 Exchange Rules

Net Selling Price (NSP)

To avoid capital gains tax on the sale of your relinquished property, you must spend an amount equal to or greater than your net selling price. (NSP equals selling price minus title fees and realtor commissions)

What Properties Qualify

You can exchange all real estate as long as you hold it for investment or productive use in a trade or business. House=Duplex=Land=Condo=Business Land=30-Year Lease=Deed for Deed

You Must Use a Qualified Intermediary (QI)

The regulations state that you use a QI to conduct your exchange. Your QI does three main things. First, they prepare the exchange agreement. Second, they escrow the proceeds after closing on the relinquished property. Third, they coordinate the exchange with all closing agents.

45-Day Rule

To avoid capital gains tax on the sale of your relinquished property, you must spend an amount equal to or greater than your net selling price. (NSP equals selling price minus title fees and realtor commissions)

180-Day Rule

You must close on one or more of your identified replacement properties within 180 calendar days of closing on your relinquished property.

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