Explaining 1031 Exchanges
What you need to know about 1031 exchanges and vacation rentals.
What is a 1031 tax-deferred exchange? Today I’ll discuss the three most important things you need to be aware of if you’re thinking about making one of these like-kind exchanges. The 1031 exchange is named after section 1031 in the IRS tax code, which says that if you sell an investment property you own, you can roll those proceeds tax-free into another property purchase.
Feel free to follow along in the video above, or use the timestamps below to navigate the discussion at your leisure:
0:00—What is a 1031 exchange?
1:50—How these exchanges work in Summit County in terms of vacation homes
2:50—Key points to remember
3:55—You have 45 days after closing to identify three properties to purchase
5:15—Watching the market for a suitable replacement before you sell your property
5:48—Know the rules regarding short-term vacation rentals in your area
6:40—A little-known tip about the moratorium on short-term rental licenses
7:30—Wrapping up today’s topic
If you have any questions about 1031 exchanges or the processes involved with them, please feel free to reach out to us. We’re here to help you with your buying and selling needs.