What is the primary benefit of a Deferred Exchange?
The primary benefit for owners disposing of business or investment held property is the opportunity to Defer the payment of Capital Gains Tax. What is a deferred/delayed Exchange? You surrender your relinquished property at one time and acquire the new replacement property, no later than 180 days from the closing of the relinquished property, or the due date for the tax return for the year of the sale, whichever is earlier. Why does our government allow Deferred Exchanges? The government perceives it as a continuity of investment. General Questions on 1031 Can I add an additional investor in the new piece of property I am acquiring? Yes, but he must be an Investor and not a partner. How much time do I have? You will have 45 days from the day you close your relinquished property (escrow) to identify the candidate(s) you wish to acquire, this is known as the Identification Period. You will then have an additional 135 days in which to close your replacement property purchase. You cannot e
