Home Buying in 76109>Question Details

Jayne Marche…, Home Buyer in Petaluma, CA

I just sold a rental property in California. Can I do a 1031 exchange in Ft. Worth Texas?

Asked by Jayne Marchesi, Petaluma, CA Sun Jan 22, 2012

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I have completed more than 50, 1031 exchanges for buyers and investors just like yourself. I set up a property management company specifically for this. So I guess the short answer to your question is YES.

Be diligent in your search and if you work with an agent, make sure they come recommended. Out of state investors are typically so sticker shocked by the affordability, they pay too much. Believe it or not. Sort of reverse sticker shock I guess.
0 votes Thank Flag Link Fri Apr 13, 2012
Yes, if I understand what you mean by "just sold", then you are within the identification period for finding a new replacement property or properties.
Yes, Fort Worth, along with any other location, is a valid place to find a replacement property.
"Like kind" also is very broad and allows you to replace the rental with an office building, a single family, an oil lease, farm land or any other 'real property'.

I am assuming you used a Qualified Intermediary to receive the proceeds (else you wouldn't be talking 1031). 1031 is a great way to avoid whopping IRS tax bills on funds received (but we're all facing whopping bills soon to pay off the staggering national debt).

Don't let the identification period expire without identifying candidate(s). You still have another 180 after that 45-day identification period to close the purchase. So, don't dawdle. Your intermediary must be given the candidates within the period. And you must close on one of them. Watch the rules carefully.

Many title companies experienced in completing the 1031 purchase and some Realtors are, too.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Tue Jan 24, 2012
Probably not, but check with your CPA.
0 votes Thank Flag Link Sun Jan 22, 2012
Hi Jayne

One sets up a 1031 exchange first with Title before one closes a sale of a

If you already sold the property and have the proceeds in hand then it is too late.
If you are close to closing, then work with the buyers to set up an exchange as some
Lenders do not lend to properties in a 1031 exchange.

Good luck.
0 votes Thank Flag Link Sun Jan 22, 2012
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