Brian decided it was time to increase his investment potential. He planned to sell the 2-bedroom condo he had been renting to tenants for ten years and purchase a triplex or fourplex through a 1031 exchange. In compliance with 1031 exchange regulations, he engaged a qualified intermediary (“QI”) to handle the funds of the condo and the eventual acquisition of the replacement property.
Section 1031 of the Internal Revenue Code underlines the rules of exchanging property held for investment or productive use. If you meet the requirements, you can acquire real estate through a like-kind exchange or 1031 exchange.
If you are a real estate investor, by now you’ve heard about the benefits associated with 1031 real estate exchanges. Although these have gained in popularity, real estate exchanges can be difficult for investors due to the strict guidelines outlined by the IRS.
1031 exchanges can be an opportunity for investors to defer the tax consequences that come from the sale of a property. However, there are certain requirements that must be met in order for 1031 exchanges to be considered valid by the IRS. These requirements include the following:
There are very specific requirements for identifying and acquiring potential like-kind replacement properties in your 1031 exchange transaction. Section 1031 of the Internal Revenue Code (“IRC”) specifies that investors must identify candidate replacement properties within a 45-day period to defer capital gains taxes through a 1031 exchange.
CrowdPay is an FDIC insured bank account that you can use to purchase investment opportunities. You fund your CrowdPay account by ACH or wire transfer. All future dividends, interest payments, as well as revenue sharing payments will be placed into your CrowdPay account. You have the option to transfer funds into the account, withdraw funds from the account, or purchase additional assets at any time.
The account is held by GoldStar Trust Company, a trust only branch of Happy State Bank, and cash that accumulates in your new CrowdPay account is FDIC insured. Please follow the below link for additional important information regarding your CrowdPay account.