We are familiar with 1031 Exchanges. These are real estate transactions that join the sale of an old property with the purchase of a new property in a way to defer taxable gains. Mostly involving investment property, this can be done with business property as well. Always consult with your tax specialist for advice.
There are qualifications on the property involved in the exchange. If it meets the usage requirements, there are two key dates. Identification Period is the 45 day period after you sell a property within which you must identify the property you want to buy. The Exchange Period is the 180 day period within which you must close the purchase.
Because there are no exceptions, this is a delicate transaction. It also requires a qualified intermediary to avoid a tax problem. This independent third party holds the proceeds from the sale until the purchase transaction closes.
We highly recommend you speak to a licensed realtor for complete details. Please contact us with additional questions.