Scottsdale 1031 Exchange

A 1031 Exchange is a great tool to help build wealth through real estate ownership. Scottsdale is a great destination for investment property due to its moderate client, strong rental market and future long term growth outlook. Are you looking to Exchange into or out of your Scottsdale Investment property? Let us help you with our extensive experience to make it a simple and successful transaction.

Scottsdale Arizona has been a favorite for 1031 Exchange sellers and buyers as it is a great rental market. The strong rents has lured many looking for an up leg on a 1031 Exchange and the strong appreciation has allowed many in Scottsdale to Exchange out of single unit into multiple units.

Let us know how we can help you with your Scottsdale Investment and 1031 Exchange needs. With over 30 years of Real Estate experience we can help you with you next step building your real estate empire.

Phoenix Arizona Area Duplexes-Triplexes-Fourplexes

Phoenix Arizona Area Multi-Family 5 Units to 24 Units

Scottsdale Condos for Sale - 85251 Zip Code

North Scottsdale Condos for Sale

1031 Exchange F.A.Q.'s

What qualifies as a "like kind" Property?

This is probably the most misunderstood aspect of a 1031 Exchange. The "like kind" issue with a 1031 Exchange really boils down to a property held for investment can be exchanged for another property held for investment. The term "like-kind" refers to the nature or character of the property, as an example a rental condo can be exchanged for a four-plex to be held for investment or unimproved land can be exchanged into a multi unit investment property.

What is a qualified intermediary in a 1031 exchange?

A qualified intermediary, also called accommodator or facilitator, is a third party that facilitates the 1031 Exchange. They prepare the legal documents for the 1031 Exchange. They hold the funds of the relinquished and distribute the funds at closing of the replacement property. They also ensure that your exchange complies with all IRS Rules.

What are the time requirements in a 1031 Exchange?

There are two main time requirements when using a 1031 Exchange, from the time of closing on the relinquished property the investor has 45 days to identify potential replacement properties and 180 days to close on the replacement property.

Can an Exchange happen with the relinquished property in one state and the replacement property in another?

Yes, exchanging properties across state borders is very common. This happens quite in Arizona when people move to Arizona to retire and then exchange their long term investment out of state property into a local investment just down the street. Another common way to take advantage of an exchange is to move Arizona Equity into a less expensive market and be able to obtain more units and better cash flow.

Can I exchange out of or into a vacation home?

The simple answer is yes, however the property must meet a few qualifications. The qualifications as set forth in Revenue Procedure 2008-16, effective March 10, 2008. The qualifications are as follows:

Relinquished Property

1) The Holding period for the vacation is at least 24 months immediately before the exchange;

2) For each of the two-12 month periods prior to the exchange, the vacation home is rented to another person at a fair rental rate for 14 days or more; and

3) The homeowner limits his use of the vacation home to not more than 14 days or 10% of the number of days during the 12-month period that the vacation is rented at a fair rental value.

Replacement Property

1) The holding period following the exchange is at least 24 months;

2) For each of the two-12 month periods following the exchange, the vacation home is rented to another person at a fair rental rate for 14 days or more; and