08-25-2008, 06:57 AM
quote:
Originally posted by kani-lehua
john: 1) so are you saying that one cannot get an extension for the 1031 exchange?
[] That is correct.
2) this is my understanding: the exchanger has 45 days from the date the house is sold to identify the replacement like kind property. then 180 days to build/acquire the replacement property. is that correct?
[] Sorry, wrong. It's not 45 days AND 180 days. You have 45 days from the date the relinquished property is sold to identify the replacement property(ies.) You have 180 days from the date the relinquished property is sold to close on the replacement property.
3) aren't there different types of 1031 exchange methods? i thought i read something like "reverse exchange and delayed exchange"?
[] Correct, there is a "Reverse 1031 Exchange."
the home that we want to exchange is held in an llc (bad planning on our part). we most certainly do not want to pay any capital gains tax and prefer to defer as much as possible. also, we still have a mortgage on that property.
[] Not necesserily, the LLC can do a 1031 too.
"Delayed Exchange" is just another phrase for the 1031 Exchange. (It's also known as the "Starker Exchange.") Make sure you work with a Qualified Intermediary.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
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