Doing a 1031 Exchange Is Easier Than You Think

When I was an escrow officer in the mid-1970s, I handled a ton 1031 exchanges.

A 1031 tax-deferred exchange was handled a lot differently then than they are now. The investor might find a buyer first or find the upleg first, but in either case, the escrows sat in limbo until all the parties and properties had been identified. Then, the buyer would typically purchase Property B and exchange it to the investor for Property A.

If the owner of Property B was also trying to effect a 1031 tax-deferred exchange, it became even more complicated. It was never so simple as the owner of Property A exchanging it for Property B, and the complexity often made my head feel like it was ready to explode. But today, it is much easier and much less problematical . . . read more about 1031 Exchanges.

More Articles by Elizabeth Weintraub:

• Tenants in Common 1031 Exchanges
  
• Should You Fix Up or Sell As Is?
  
• How to Flip a House

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