Can’t Do a Tax-Deferred Exchange on Your Principal Residence

Question: “I’d like to sell my Clairemont condo and buy a little house in P.B. An agent said I could do a tax-deferred exchange and buy another home without paying any taxes. Is that correct?” Answer: A little knowledge can be dangerous. The agent was trying to help, but applied rules for investment property (“tax-deferred
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Can You Do a 1031 Exchange on a Fix-and-Flip?

Question: “We just bought a fixer-upper house to fix and flip. The repair work is about done. We want to sell it and buy another and not lose a lot of $$ to the taxman. Can we do one of those 1031 exchanges so we don’t pay any taxes?” Answer: Two agents that worked for
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1031 Exchanges & Short Sales Don’t Mix

Question: “I just sold an investment property and want to 1031 exchange into a short sale. What short sales do you have?” Answer: Danger…1031 exchanges and short sales don’t mix! As you may know, when you do a 1031 exchange, you have certain time limits to find and close on the property you’re buying. Specifically,
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Time Frames for a 1031 Exchange on Your San Diego Home

Question: “When you do a 1031 exchange, what are the time frames and when do they start?” Answer: Great question. This is something I’ve found that few agents even know. There are two time frames, running concurrently, starting the day you close on the property you’re selling: 45 days to “identify” the property(s) you’re buying.
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The 1031 Exchange Time Limit

“Hello Gary… We’re interested in selling our investment properties. We like the 1031 exchange concept. However, we are scared off by the 45 day identification process and feel it’s not enough time to find a property to buy.” Answer: A couple of ideas… First, you could list your properties contingent on buying a property. In
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Stretching the 1031 Exchange’s ID Process

“Hello Gary… We’re interested in selling our investment properties. We like the 1031 exchange concept. However, we are scared off by the 45 day identification process.” Answer: I understand the hesitation due to the 45-day period you have from closing your sale to “identify” the property(s) you want to buy. While everyone has this same
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Buying Up to Do a 1031 Exchange

“Hi Gary. I have 24 apartments in City Heights. They’ve been a headache lately and I’d like to get out of them into something else. Is it true that you have to buy up to do a 1031 exchange?” Answer: Almost. While you do have to buy up to do a full tax deferral, just
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