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1031 Exchanges In March 2002 the IRS released Revenue Procedure 2002-22* covering the use of tenant in common properties for a 1031 Exchange. Since 1921, the IRS has allowed real estate owners to defer paying capital gains and depreciation recapture taxes through completing a 1031 Exchange. The IRS permits this tax deferral only if you are willing to reinvest in real estate and follow their strict and specific rules and procedures. Two of the more pertinent aspects of an exchange are the use of a Qualified Intermediary and the timing deadline. Upon the close of your replacement property you will only be allowed 45 days to identify and another 135 days to finalize your real estate purchase. These deadlines can easily become difficult to achieve for stand-alone properties. With a tenant in common option you can identify, analyze and close on premium opportunities well within these strenuous deadlines.
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