What are the Key Steps in a 1031 Exchange?
- Step 1: Identify a qualified intermediary
- Step 2: List the property for sale once a qualified intermediary has been chosen.
- Step 3: At the closing, the cash proceeds of the sale are remitted to the qualified intermediary.
- Step 4: The investor/owner works with FSXchange to identify potential replacement properties, including DSTs.
- Step 5: The investor acquires a beneficial interest in either a DST or a specific whole property with the assistance of FSXchange. Intermediary wires funds to acquire replacement property.
How to Defer Taxes in a 1031
General Rules of 1031 Exchange
- Purchase equal or greater in value
- Reinvest all of the equity in replacement property
- Obtain equal or greater debt on replacement property