Section 1031-2025

Show details

4.2 out of 5

57 votes

The Exchange Agreement outlines the terms under which an Owner exchanges real property for like-kind property, qualifying under I.R.C. § 1031 regulations. It details the assignment of contract rights, the role of a qualified intermediary (Exchangor), and procedures for handling escrowed funds during the exchange process. The agreement specifies responsibilities regarding notices, identification of replacement properties, and conditions for disbursement of funds, while also addressing liability and indemnification issues.

Here's how it works

01. Edit your form online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send it via email, link, or fax. You can also download it, export it or print it out.

The easiest way to modify Section 1031 in PDF format online

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Adjusting paperwork with our feature-rich and intuitive PDF editor is simple. Follow the instructions below to fill out Section 1031 online quickly and easily:

Log in to your account. Log in with your email and password or create a free account to try the service prior to choosing the subscription.
Import a form. Drag and drop the file from your device or import it from other services, like Google Drive, OneDrive, Dropbox, or an external link.
Edit Section 1031. Easily add and underline text, insert pictures, checkmarks, and symbols, drop new fillable fields, and rearrange or delete pages from your paperwork.
Get the Section 1031 accomplished. Download your modified document, export it to the cloud, print it from the editor, or share it with others via a Shareable link or as an email attachment.

Benefit from DocHub, one of the most easy-to-use editors to rapidly manage your documentation online!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the downside of a 1031 exchange?

Market Risks- Like all real estate transactions, 1031 exchanges are not immune to market downturns. If the value of the replacement property drops significantly, it can negatively impact an investors portfolio.

What is the 1031 exchange income?

IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.

What is a 1031 and how does it work?

A 1031 exchange is a tax-deferred transaction. If a business owner has property they currently own, they can sell that property, and if they reinvest the proceeds into a replacement property, they can defer any capital gains taxes associated with that sale.

What disqualifies a property from being used in a 1031 exchange?

The property must be a business or investment property, which means that it cant be personal property. Your home wont qualify for a 1031 exchange. However, a single-family rental property that you own could be exchanged for commercial rental property.

What is Section 1031 income?

Generally, if you make a like-kind exchange, you are not required to recognize a gain or loss under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, you must recognize a gain to the extent of the other property and money received.

How does section 1031 work?

A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of a business or investment property into a new, like-kind property. The replacement property in a 1031 exchange should be of equal or greater value to avoid paying taxes immediately.

Section 1031-2025

Here's how it works