QUESTION - “Can I identify a replacement property and purchase it before I sell my original investment property and still use a 1031 tax exchange? I have a piece of property that I want to sell, but I want to purchase another piece quickly and I don’t know how long it will take me to sell my current property. ”
ANSWER- The answer is Yes! You can buy first and sell later by using a Reverse Exchange. It is a complicated transaction that requires your Qualified Intermediary to take title to your replacement property and hold it until you sell your Relinquished property. We have done many, many of these types of exchanges. We have a few articles as well that you can read about doing a reverse exchange the links are below.
Tags: 1031, All States, reverse 1031 exchange, reverse exchange