Jacksonville 1031

You have 45 calendar days from the sale of your relinquished property to identify replacement properties in writing, and 180 calendar days to close on one or more of those properties. The federal deadline shortens if your tax filing is due sooner, so extensions may be required.

Any real property held for investment or productive use in a trade or business is considered like-kind to any other qualifying real property within the United States. Primary residences and inventory do not qualify, while multifamily, retail, land, and commercial assets typically do.

Boot is any cash or non-like-kind property received in an exchange. Boot is taxable up to the amount of capital gain realized, so reinvesting the full net equity and replacing equal or greater debt is essential to defer 100 percent of the gain.

A 1031 exchange defers federal and Florida income tax on qualifying real property, but documentary stamp taxes, transfer fees, and local surtaxes are still due at closing per Florida law.

Yes. A reverse or improvement exchange uses an Exchange Accommodation Titleholder (EAT) to hold the replacement property until your relinquished asset sells, provided all exchange funds are controlled by a qualified intermediary.

Form 8824 summarizes the relinquished and replacement properties, dates, boot received, and gain deferred. Your CPA files it with your federal return and keeps backup schedules from your intermediary.