A 1031 exchange involves swapping one investment property for another to defer capital gains tax on the sale. The term gets its name from the Internal Revenue Services (IRS) code Section 1031.
It's important to understand common 1031 exchange terms and concepts. We've compiled common terms and questions to create a comprehensive 1031 Crowdfunding glossary for your reference.
An investor has 180 days from the relinquished property's closing date to buy a replacement property. This period includes the 45 days used to identify the replacement property.
In a 1031 exchange, an investor has 45 days from the closing date of their relinquished property to find a replacement property.