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How To Bring Funds From a 1031 Exchange Sale Into An Apartment Syndication

Patrick Grimes

Download our Free 1031 Exchange Guide!

Everything you need to know about How to 1031 Into an Apartment Syndication

Patrick Grimes ebook

What Is a
1031 Exchange?

A 1031 exchange is a process through which one can sell an investment property and buy another while deferring capital gains tax. Typically, when one sells an investment for profit, they have to pay capital gains tax. Real estate is no different.

However, section 1031 of the tax code allows for an exception that when followed, permits that capital gains tax to be deferred. It’s a great benefit that sounds easy, but of course, there are rules

Can I 1031 my profits from a Syndication into the next deal?

The quick answer is YES and it is standard practice for Invest on Main Street.

How do I bring funds from a 1031 Exchange sale into a Syndication?

Executing a 1031 Exchange

What are the costs involved?

In addition to the paperwork required to execute 1031, there are specific costs associated with doing so into syndication. When investor exchanges at/above $1,000,000 into syndication, these costs are often covered by the investment.

Timeline to Successfully Execute a 1031 Exchange

1031 exchange into apartment syndications

Under the 1031 exchange code, the taxpayer has a 45-day window from the date of the sale of the previously owned property to identify the replacement property. The 45-day window is commonly referred to as an identification period. This process must be done in writing with the authentic signature of the taxpayer.

 
When completing a 1031 exchange, the 180 Day-Purchase Rule mandates that the replacement transaction must be completed within 180 days or six months in total. Regardless, the rule always applies. This means that the conveyance of the title must be completed by this date. If you ever decide to participate in apartment syndication, please adhere to this rule. Download our 1031 Exchange Guide to learn more.

Download our Free 1031 Exchange Guide!

Everything you need to know about How to 1031 Into an Apartment Syndication

Patrick Grimes ebook

Schedule Your 1031 Consultation and Receive a Signed Hard Copy Of Patrick's #1 Amazon Bestselling Book as a WELCOME GIFT

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