No matter which combined strategy you choose, the Improvement 1031 Exchange allows you to acquire your replacement property and use some of your 1031 Exchange funds to improve your acquired replacement property on a tax-deferred basis provided the proper parking structure has been put into place.

Can you 1031 into a fund?

One question we’ve been asked a lot lately by 1031 exchange investors is whether it’s possible to do a 1031 exchange into a Real Estate Investment Trust, or REIT. The short answer is: “you can do a 1031 exchange into a REIT if you follow a few steps.”

What kind of property qualifies for a 1031 exchange?

Property held for productive use in a trade or business or for investment qualifies for a 1031 Exchange. The tax code specifically excludes some property even if the property is used in trade or business or for investment. These excluded properties generally involve stocks, bonds, notes, securities and interests in partnerships.

What should I do if my 1031 exchange falls through?

A 1031 intermediary with a proven track record is a great first step to verifying that the intermediary will be able to follow through and provide you with the right guidance. The intermediary should also be bonded and insured. Funds should be held in a special account called a Qualified Trust Account or Qualified Escrow Account.

What do you need to know about IRC Section 1031?

IRC Section 1031 is a complex tax concept; Realized does not offer legal or tax advice, consult your legal or tax professional regarding the specifics of your particular situation. Tackle the art and science of completing your 1031 exchange. Your role in the 1031 exchange being considered?*

Do you have to use a qualified 1031 intermediary?

All 1031s must use a qualified 1031 intermediary. Unfortunately, not all 1031 intermediaries are created equal. This is a result of the industry not being well-regulated. Just because an intermediary is qualified and has a license doesn’t mean they have the experience and can execute a 1031 successfully.