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1031 Exchange:
1031 Exchange Guide | 1031 Exchange Services

HARBOR CITY 1031 EXCHANGE GUIDE

1031 EXCHANGE BASICS

Message From Harbor City's Broker-In-Charge Welcome to the Harbor City 1031 Exchange Guide. At Harbor City, we specialize in IRS Section 1031 tax-free exchange transactions. Harbor City knows the rules. We make it our business to study and stay on top of 1031 exchange rules, techniques and case law developments. Harbor City will find the right replacement property. We benefit from our extensive relationships within the real estate community and our access to the best local and national replacement property listing databases. Harbor City simplifies the 1031 exchange. We act as the client’s “quarterback”, coordinating the professional services of their attorney, accountant and qualified intermediary. This informal guide is intended to explain key concepts associated with structuring a tax-free exchange pursuant to Section 1031 of the Internal Revenue Code. This guide has been organized using a series of “Frequently Asked Questions”. Should you have questions about 1031 exchange transactions that are not addressed in this guide, please don’t hesitate to call me. HARBOR CITY REAL ESTATE ADVISORS, LLC Christopher T. Cunniffe Broker-in-Charge

• What Is a “1031 Exchange”?
• Who Benefits Most from Section 1031?
• What Are the “Safe Harbor” Regulations?
• What is a Qualified Intermediary?
• How Do the 45-Day and 180-Day Rules Work?
• How Many Properties Can I Identify as Potential Replacement Properties?

PASSING THE “PURPOSE” TEST

• How Do I Determine if My Property Qualifies for Section 1031?
• Does Section 1031 Impose a Minimum Holding Period?
• Can I Sell or Acquire A Personal Residence as Part of a 1031 Exchange?
• Can I Sell My “Second Home” or “Vacation Home” as Part of a 1031 Exchange?
• Can I Trade a Farm for a Skyscraper under Section 1031?

LET’S TALK ABOUT “BOOT”

• What on Earth is “Boot”?
• Can “Boot” Poison My 1031 Exchange?
• What is the Difference Between a “Fully Deferred” Exchange and a “Partially Deferred” Exchange?
• Why Might I Not Pursue a “Fully Deferred” Exchange?

SOME ADVANCED 1031 TOPICS

• Can I Refinance Property Before or After the Exchange?
• Can I Replace My Investment Property with a Partnership Interest?
• What is a “TIC” Interest?
• What is a “Build to Suit” Exchange?
• What is a “Reverse” Exchange?

DISCLAIMER: Please note that this guide has been prepared as an informal resource only and should not be relied upon for advice with respect to any particular 1031 exchange transaction. It is important that you consult with your own tax professionals before proceeding with a 1031 exchange.