In order to have a totally tax free exchange you'll need top accomplish three things, one buy replacement property equal or greater in value than what you sold, two, move all your cash from the old property to the new, and three, replace your debt. Use this wizard to quickly understand your 1031 exchange math..
There are two critical days to any tax deferred exchange completed pursuant to IRC Section 1031. Namely, the deadline for identifying new replacement property, which is 45 days after your relinquihed property closing. And of course, the 180th day after your closing which represents the date by which you should have all your replacement property purchased and closed. Use this calculator to gather your dates.
Understanding the underlying math which will inform the total of your capital gain and depreciation recapture tax exposure is very important. To determine your equity, capital gain expsoure, depreciation recapture obligation, and the replacement property transactional numbers required so you can defer it all, try this estimator.
There are times in some exchanges where you may want to modify the nature of your replacement property. Because these types of changes can potentially impact the status of your defrred gain gtreatment, be very careful making changes in the middle of an exchange. Just remeber, it is always best to buy as the same entity as you sold. But if you want to change, check this wizard first.
