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.
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:
The IRS issued new guidance Thursday night that granted extensions to all taxpayers in 1031 exchanges with a 45-day Exchange period or 180-day Exchange period deadline between April 1st and July 15th, 2020. These investors will have an automatic extension to July 15th.
Update: As of 7/17/20, all 1031 CF Properties senior housing facilities have experienced zero COVID-19 cases among residents and staff.
As Coronavirus (COVID-19) diagnoses continue to increase around the country, we at 1031 Crowdfunding are writing to give an update on the actions taken at our senior housing facilities. We understand the uncertainty this is causing for investors as it relates to their current portfolios and potential investments in senior housing.