1031 Tax Exchange<title> <meta name="keywords" content ="What is a 1031 Tax Exchange, What are the benefits of a 1031 Tax Exchange, What are the negative issues of a 1031 Tax Exchange, Why it is important to know tax laws and proceedures, Information about 1031 Tax Exchanges"> <meta name="description" content="This page gives information about 1031 Tax Exchanges"> <style type="text/css">  </style> </head> <body bgcolor="#ffffff" leftmargin="0" topmargin="0" > <div align="left"><font face="Verdana, Arial, Helvetica, sans-serif"> <p><a href="http://www.moneymatters101.com"><IMG SRC="/images/mmbanner.gif" alt="Link to MoneyMatters101.com " WIDTH="760" HEIGHT="144" border="0"></a> <table width="760" border="0" height="4"> <tr align="right" valign="top"> <td height="4"> <FONT FACE="Verdana" COLOR="#2D7F3F" SIZE="2">8/7/2008</FONT></td></tr> </table> </font> </div> <div align="left"></div> <table width="760" border="0" cellpadding="0" cellspacing="0"> <tr> <td width="193" valign="top" 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</strong></font></td> <td width="24" align=middle><img src="/images/spacer.gif" alt="" width="20" height="1"></td></tr> <tr> <td bgcolor="#ffffff" height="50" WIDTH="9"><img src="/images/spacer.gif" alt="" width="4" height="1"></td><td vAlign="top" width="196" height="50"> <p> <strong><A HREF="/tax/taxex.asp" title="Information about 1031 Tax Exchange"><FONT FACE="Verdana" COLOR="2D7F3F" SIZE="2">1031 Tax Exchange</FONT></A></strong><br> <strong><A HREF="/tax/aretaxesfair.asp" title="Information about Whether Taxes Are Fair"><FONT FACE="Verdana" COLOR="2D7F3F" SIZE="2">Are Taxes Fair</FONT></A></strong><br> <strong><A HREF="/tax/cg.asp" title="Information about Capital Gains Tax"><FONT FACE="Verdana" COLOR="2D7F3F" SIZE="2">Capital Gains Tax</FONT></A></strong><br> <strong><A HREF="/tax/electronicfiling.asp" title="Information about Electronic Filing"><FONT FACE="Verdana" COLOR="2D7F3F" SIZE="2">Electronic Filing</FONT></A></strong><br> <strong><A HREF="/tax/filing.asp" 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principal to the deferment of taxable capital gains to a later date and meeting certain other conditions as set forth by the Internal Revenue Service (IRS).</p> <p class="style1">The standards prescribed for 1031 tax exchanges are listed below:</p> <ul class="style1"> <li><a href="/capital/rest.asp">Property</a> must be traded for one that is considered to be of like-kind quality. </li> <li>Both properties must be somewhat similar in nature but not necessarily the same. </li> <li>They may have different uses and may be located in different areas or surroundings. </li> <li>A trade may take place involving a rural property and a city property.</li> <li>An unimproved lot for one that is improved.</li> <li>A <a href="/realestate/realestate.asp">rental property</a> for a store front property.</li> <li>There may also be a trade between leaseholds for business properties.</li> <li>The exchanged properties in question must have had a history of productive use, such as a business or income producing entity.</li> <li>The trade must have involved properties that were of equal or of greater value or <a href="/loans/lterms/termse.asp">equity</a>, the difference being paid by the.</li> <li>A trade in like-kind property must take place with a specified period of time. The identification of the new property must occur within 45 days of the first transfer and the transaction of the trade must be made within 180 days.</li> <li>The exchange must take place with properties located in the United States.</li> <li>The properties involved in the exchange must be held for at least two years. If either property is sold within the two year period, both parties are subject to <a href="/capital/capital.asp">tax </a>consequences.</li> </ul> <p class="style1"> For reasons of proper taxation, the IRS takes a hard look at 1031 tax exchanges. <p class="style1">There are advantages to the 1031 tax exchange as far as deferring tax liabilities, but there are also inherent disadvantages to this process. <p class="style1">It is wise to understand tax laws and procedures before getting involved in such transactions, or as stated above, you should have someone else who is knowledgeable in the field of <a href="/capital/rest.asp">tax law</a> guide you through the process. <P align="left" class="style1"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </p></td> <td width="150" valign="top" height="598"> <table border="0" cellPadding="0" cellSpacing="0" width="150" align="right"> <tr> <td colspan="3" bgcolor="#ffffff" ><img src="/images/spacer.gif" alt=" " width="150" height="13"></td></tr> <tr> <td bgcolor="#ffffff" vAlign="top" width="10" height="90"><img src="/images/spacer.gif" width="20" alt=" " height="1"></td><td vAlign="top" width="150" height="90"><p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Featured Book</b></font> <p align="center"><FONT FACE="Verdana, Arial, Helvetica, sans-serif" SIZE="2"><IMG SRC="/survey/images/book.jpg" alt="Book about investing" BORDER="0"></FONT> <script type="text/javascript"> </script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="/aboutus/advertise.asp"><strong>Advertise on MoneyMatters101.com</strong></a></font> </td></tr> </table> <p ALIGN="center"></td></tr> <tr> <td><img src="/images/spacer.gif" alt="" width="1" height="100"></td><td> <p> <font face="Verdana" size="2" color="#2D7F3F"> <strong>Finance Topic of the Month: <a href="http://www.moneymatters101.com/banking/fdic.asp">Federal Deposit Insurance Corporation (FDIC)</a></strong></font> <p> <font face="Verdana" size="2"> <strong> <SCRIPT LANGUAGE="JavaScript"> var txt = "Bookmark Us!"; var url = "http://www.MoneyMatters101.com"; var who = "MoneyMatters101.com"; var ver = navigator.appName ; var num = parseInt(navigator.appVersion); if ((ver == "Microsoft Internet Explorer")&&(num >= 4)) { document.write('<A HREF="javascript:window.external.AddFavorite(url,who);" '); document.write('onMouseOver=" window.status='); document.write("txt; return true "); document.write('"onMouseOut=" window.status='); document.write("' '; return true "); document.write('">'+ txt + '</a>'); }else{ txt += " (Ctrl+D)"; document.write(txt); } </script></strong></font> </p> </td></tr> <tr> <td><img src="/images/spacer.gif" alt="" width="1" height="100"></td><td> <style type="text/css">  </style> <div align="center"> <p><font face="Verdana, Arial, Helvetica, sans-serif" size="1">Use of this web site constitutes acceptance of the <A HREF="/aboutus/disclaimer.asp">Terms of Use</A>.</font> </p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><span class="style1">We are looking to create more mutually beneficial partnerships. 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