Web worksheet february 03, 2023 05:57 the 1031 exchange worksheet is often used in financial and accounting applications, because it allows users to import or export. 3. Also file Form 8824 for the 2 years following the year of a related party exchange. Calculate the Final Basis in the 1031 Exchange. Adjusted tax basis. ) of your intent so they can properly assist you in conducting the transaction. A partial exchange allows you. What is a 1031 exchange? A 1031 exchange is a transaction in which eligible property is exchanged for property of like-kind and gain or loss is deferred for federal income tax purposes. ** State Capital Gain s Tax varies by state and income level, 5% is just an estimate used as the default above. Estimate the realized and recognized gains to calculate the transfer basis. The 1031 exchange calculation worksheet isn’t an any different. 45 Day Deadline: Must identify potential like-kind replacement properties to the qualified intermediary no later than midnight of the 45th calendar day following the close of the relinquished property sale transaction. If the names on the sale property and the exchange property are different, it won’t be accepted. 1031 Exchange. Calculate the taxes you can defer when selling a property. Web a 1031 exchange calculation worksheet is used to help find the profit or loss from a real estate transaction. In the above example, the Exchanger can add $100,000 of cash to offset the mortgage boot. Key Takeaways. Information exchange worksheet. Realized gain from the exchange (line 1 minus gain or Put your money to work for you by choosing to do a 1031 tax deferred exchange today. Tax capital gains owe calculate minimize rates tips them businessGains wikihow Withholding wikihowGains irs excel taxes calculate. 400 W. party in a like-kind exchange, you must file Form 8824 with your tax return for that year. (1) Federal Capital Gains equal to Realized Gain less depreciation taken multiplied by the applicable rate. By hiring 1031X, investors who sell real estate can use a 1031 exchange to save money and grow their wealth. Even if you did not close on your Replacement Property until the following year, Form 8824. Clients of Plenti enjoy the Plenti Financial Marketplace- a complete solution of clear, accessible services for real estate investors. Austin, TX 78701. After the 45th day, you have 135 days remaining in the total exchange period. 01. Proc. Expenses of exchange 12. Resources. If the changes proposed under the American Families Plan are assumed in this example to have been enacted, we can observe that the tax benefits of exercising a like-kind exchange are drastically diminished. capital gains and depreciation recapture taxes apply to the $120,000 gain ($585,000 minus $465,000 cost basis). If you take cash out and/or you purchase less than you sell, it is considered. Read the guidelines to determine which details you have to provide. In a 1031 exchange, the owner of an investment or business property exchanges one property for another. §1. Download this excel loan calculator template in pdf online and create a thorough and profession loan calculator file with accurately calculated loans for your business or organization. Web this 1031 exchange calculator will estimate the taxable impact of your proposed sale and purchase. For example, you're disposing two assets for one. 1031 Exchange Calculation Worksheet Web this 1031 exchange calculator will estimate the taxable impact of your proposed sale and purchase. This method is popular with investors looking to upgrade properties without paying taxes on proceeds. Web worksheets and checklists available for free to natp members include:. The calculation is as follows: Annual Allowable Depreciation multiplied by the total years you have owned the property = Accumulated Depreciation. Click Blank workbook. ORG - Master of Documents. 5+ billion in successful 1031 exchanges nationwide. Example 1: Imagine you sell a property for $325,000 — $100,000 more than you originally paid — with $15,000 in closing costs. Divorce, Death & Tax Deferral Under IRC Section 1031. Once everything is ready, we’ll ensure the property transfer goes smoothly. In General an Exchange (known as a 1031 Exchange) is the sale of your property and then putting all of the money received into the purchase of a new Like Kind Property. The term “basis” of a property is the cost of its purchase or acquisition. On Mac, click the New tab and then click Blank Workbook. When the replacement property has a lower value than the sale price of the relinquished property, that difference is. Read the guidelines to determine which details you have to provide. Like-Kind Exchanges Section 1031 regulations. Kirkland, WA 98033. 1031(k)-1 implement statutory changes. 4) You want to simplify your life. Say you bought a beach house for $100,000 and sold it for $1 million. Benefits. 1031 Crowdfunding launches Covenant Senior Housing REIT with $51. How to create. See full list on mortgagecalculator. Worksheet April 17, 2018. In this example, the amount is based on $400,000 of depreciation taken. (3) Rate varies by state. In theory, an investor could continue deferring capital. Web web like kind exchange worksheet 1031 exchange calculator excel. All |. Please assume that all transactions took place during 2019. What Is The Formula For Capital Gains Tax -. com. * indicates required. $. This. The accountant could suggest you embark on a 1031 exchange and roll over at least part of that gain into a like-kind property. Web this 1031 exchange calculator will estimate the taxable impact of your proposed sale and purchase. You complete the exchange by purchasing a $500,000 property with a mortgage of $350,000. 1031 Exchange Worksheet Excel Master of Documents. Our custom 1031 solutions extend to businesses of all sizes, so you can see the value of our support year after year. Add the Closing Costs and Capital Improvement Costs for Your Real Estate. Web like kind exchange worksheet 1031 exchange calculator excel. Call Toll Free: (888) 771-1031. If you are selling a business or other personal property triggering gain, consider a Qualified Opportunity Fund (“QOZ”, “OZ” or “QOF”) which may offer tax benefits. 2. Our main office is located in downtown Minneapolis, but we help clients throughout the state of Minnesota and the country. To satisfy the rule, the Exchanger would be required to acquire all ten identified properties within the exchange period to complete a successful exchange. $300,000 acquisition cost less $125,000 deferred gains = new basis of $175,000. Typically, your partial 1031 exchange will be taxed in the following ways: Regular depreciation recapture is taxed as ordinary income, so this is your personal income tax rate, capped at 25%. Qualified dividends and capital gains worksheet calculator — db-excel. Rather than have the $10,000 profit taxed as a capital gain, the like-kind exchange allows the gain to be "passed on" to the new property used for business. Aircraft as a 1031 Exchange. 25 * total deferred gains of $500,000 = $125,000. 50%. Web this fact sheet, the 21 st in the tax gap series, provides additional guidance to taxpayers regarding the rules and. Web under the tax cuts and jobs act, section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property. Watch on. There are looming tax changes that could limit the amount of 1031 Exchange deferral to $500,000. Reg. To pay no tax when executing a. , the acquired property) must be factored into the overall exchange’s cost basis. We provide speed, accuracy & security through the exchange process. The 1031 exchange can be particularly helpful if you want. However, with a 1031 exchange, you can defer paying those taxes until you sell the newly acquired property. Add and replace text, insert new objects, rearrange pages, add watermarks and page numbers, and more. 4. Loveland CO Real Estate. We always attempt to reveal a picture with high resolution or with perfect images. $300,000 acquisition cost less $125,000 deferred gains = new basis of $175,000. Web a 1031 exchange allows real estate investors to swap one investment property for another and defer capital gains taxes, but only if irs rules are met. Jeffrey Peterson is the president of CPEC1031, LLC. 6. An exchange of multiple properties or assets can be a tax-deferred like-kind exchange. This calculator will use your information, including your 1031 exchange boot tax rate, to tell you how much boot you can anticipate having — and how big of a tax bill. This calculator simplifies the process and helps you make. Property Y: $300,000 / total replacement property value of $1,200,000 = 0. You can sell a property held for business or investment purposes and swap it for a new one that you purchase for the same purpose, allowing you to. Evaluate boot given and received. comQualified dividends worksheet 2019 Irs qualified dividends gains 915 revenue 12a simplified income ssurvivorDividends worksheet. Normally a 1031 exchange is used to defer the capital gains tax owed by reinvesting 100% of the proceeds from the sale of a relinquished property into the new replacement property. Most importantly, I highly recommend that you only work with a QI that is associated with one of the major title companies. Closing agent fees (title, escrow or attorney closing fees) Attorney or tax advisor fees related to the sale or the purchase of the property. 5MM in proceeds and reinvest $1MM into the new property. IRS Regulations changed effective January 1st, 2018. . Partial 1031 Exchange Boot Calculator This Calculator Will Use Your. The relinquished property is the property given, while the replacement property is the property received. Calculate Now. 74 million, or 21. Regular 1031 exchange rules are already challenging enough. Owner’s title insurance premiums. There are four types of 1031 exchanges, but the most common type is a delayed exchange. Create a. Reaping the benefits of the 1031 exchange involves two critical deadlines: the 45-day identification period and the 180-day completion rule. The rule outlines the following requirements for a 1031 exchange: Your personal use of the property cannot exceed 14 days or 10 percent of days in the 12-month period the property is deemed as a rental. Line 26-38 Not applicable to 1031 exchanges WorkSheet #10 for Buy-Down only. e. g. If there is no 1031 exchange, it is the difference between the net sales price and the adjusted cost basis. The property must be rented out to another person for more than 14 years of the 12-month period after the exchange. Income calculation worksheets 2022 Capital gains tax spreadsheet shares — db-excel. 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template. When you sell a property, the IRS wants to tax the profit you made. 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template. 45 Day Deadline: You have to identify prospective like-kind replacement properties prior to midnight on the 45th day after closing on your property sale transaction. Deferred gain from previous 1031 exchange, if any ( (3). Both properties must be similar enough to qualify as "like-kind. the management team of 1031 Crowdfunding is equipped to truly excel in the variety of unique situations that a real estate platform is likely to encounter. Excel spreadsheet to help you with the preparation of IRS Form 8824 “LikeKind Exchanges. Quick steps to complete and e-sign 1031 exchange worksheet excel online: Depreciation Recapture Calculator. In other words, an investor can exchange one investment. Follow each screen to make your entries > Your Form 8824 will be completed for you based on your entries. 1031 Exchange Calculator. Leader1031*, a subsidiary of Leader Bank, is proud to provide relationship Qualified Intermediary services with a world-class client service experience across all 50 states. The total gains deferred of $500,000 must be split proportionately between the two replacement properties Y and Z to determine what amount is taken from each property’s acquisition cost to come up with the new cost basis for each property. In order to acquire that property, you had to pay $5,000 in closing costs to the bank and an attorney. However, if the Exchanger has $1,000,000 worth of net equity and trades into a building with only $900,000 of equity, the. 1031 exchange irsUnderstanding the “tax-free” 1031 exchange 1031 worksheet. 2000-37, with a slight tweak. You will have 180 days to complete the entire 1031 process, beginning from the EAT purchase through to the completion of the exchange. The $10,000 gain will be factored into the tax. One-click processing of international currencies with printable and dynamic charts. in theCalculation 1031 promotiontablecovers Exchange 1031 worksheet kind calculator excel realized section laptop experts difficult investing giving same think should why don re whichIrs 1031 exchange worksheet. The. Edwards, JD, CES®. It is important to speak with an experienced real estate attorney. 1031 exchange benefits. Evaluate boot given and received. Use this calculator to help you determine the deadlines for the 45-Day Identification Period and the 180-Day Exchange Period based on the closing date you provide for the relinquished property. Boot received (line 10 minus line 12) 14. A 1031 exchange is a real estate deal that lets you “exchange” one investment property for another. Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don re which1031 exchange worksheet excel 1031 spreadsheet exchange tax section power property next deferred profits move looks. Check Details. Web this calculator will help you to determine how much tax deferment you can realize by performing a 1031 tax exchange instead of a taxable. Multiple property involvement ramps up complexity to the next level. Use the Add New button. Federal & state tax authorities calculate the amount you owe based on the taxable gain, not the gross proceeds from the sale of the property. But there is an option for deferring capital gains taxes from the sale of an investment property by reinvesting the proceeds. Under Business Income scroll to 'Less Common Business Situations' > Start Sale of Business Property. $606,625. The properties involved in the 1031 exchange must be of like-kind. We always effort to show a picture with high resolution or with perfect images. Property Y: $300,000 / total replacement property value of $1,200,000 = 0. Phone: 916-252-6900. You would like to do a 1031 exchange into a $2,500,000 Starbucks in Clearwater, Oklahoma. Even better, our calculator can show you the benefits of a 1031 exchange — you’ll immediately see the difference in available capital with or without one. from the University of Minnesota, and is a member of the Minnesota State Bar Association and the Tax Section of the American Bar Association. 1031 Exchange Worksheet Report S Like Kind Example — 1031 Exchange Worksheet Excel. 1031 exchange marketplace for diversified portfolios of tax-differed property interests. Linkedin. Moreover, the new asset — or assets — must be “like. 1031 exchange calculator. 1031 exchange rules 2022: a 1031 reference guide 1031 exchange nyc tax hauseit additional reverse taxpayers fees incur transfer also Exchange 1031 worksheet kind calculator excel realized section laptop experts investing difficult giving same think should why don re whichHow much profit (capital gains) you realized on the sale. The exchange facilitator can be a qualified intermediary or another person who holds exchange funds for you as part of an escrow, or exchange agreement. The recognition of cash “boot” triggers a taxable event for Taxpayer A. com Check Details. So, in an m453 transaction, the investor uses a third-party dealer in a capital asset to defer the sale proceeds and the associated tax for a. Depreciation is a tax deduction you take annually to account for wear and tear on the property. com Check Details. blogspot. Exchange. After 28 years in the business, our clients have processed $2. Use our 45/180-day 1031 exchange calculator to easily determine key dates for property exchanges. #1050, Irvine, CA 92614. 2. Original purchase price ($):This 1031 Exchange calculator will estimate the taxable impact of your proposed sale and purchase. Easily estimate your tax liability without having to research complex tax rules and regulations. Like-kind exchanges -- when you exchange real property. 7150 East Hampden Ave. 1031 Exchange Worksheet 2019 2020-2023 - Fill and Sign Printable. All three steps must be completed for the tax return to contain the correct information. Use the 1031 Exchange Calculator. comQualified dividends worksheet 2019 Irs qualified dividends gains 915 revenue 12a simplified income ssurvivorDividends worksheet. Worksheet April 17, 2018. An investor that holds property longer than 1 year will be taxed at the favorable capital gains tax rate. 37. For the convenience of our clients, we have put together a simple and free online calculator that will help you determine your 1031 exchange deadlines. Our calculator also takes into account any applicable deductions, such as real estate agent fees, closing costs, and other expenses related to the sale of the property. Realized Blog Articles. If a 1031 exchange is performed, it is any amount purchased less than the net sale OR any amount of cash taken from the net proceeds (often referred to as "boot"). Calculate the taxes you can defer when selling a property. Wyoming. Schedule FREE Consultation. Misconception 3 - An Exchanger must buy the exact type of property that they are selling. Get a Like Kind Exchange Calculator branded for your website! Colorful, interactive, simply The Best Financial Calculators! If you exchange either business or investment property that is of the same nature or character, the IRS won't recognize it as a gain or loss. So you can’t use your real estate broker or agent or a relative to facilitate the. Irs 1031 Exchange Worksheet | TUTORE. Capital gains tax is owed when you sell a non-inventory asset at a higher price than you paid resulting in a realized profit. Over the course of numerous transactions the geometic growth in capital can be substantial. In this example, you'd subtract $149,080 from $197,150 to find out that you put $48,070 of new value in, then add back the old property's depreciated value of $71,625 to find a new basis of $119,695. Example 1: $55,000 (–) $15,000 = $40,000 Enter $40,000Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don re whichLike kind exchange worksheet — db-excel. Recognized Gain 1. 7. Selling price less selling costs. To qualify for tax deferral, the investor must reinvest into a new investment property (hence the term “exchange”). Web Assuming A Realized Gain Of $1,625,000 (See Previous Calculation), The Sale Would Likely Place The Couple In The Highest Tax Bracket, And. 1031 exchange worksheet 1031 exchange worksheet excel 1031 exchange worksheet excel. Enter the following information and our calculator will provide you an idea of how a 1031 exchange will work in your situation. You exchange your $3,000,000 property for the $2,500,000 Starbucks. 1031 exchange versus an outright sale, a significant reduction from the $378,870 in. How To Generate A Calculator In Microsoft Excel Quora App Development Cost 2023 Business Of Apps How To Add Currency Switching With Wordpress Auto Exchange Rates. Sold later absent an 1031 Exchange for $585,000, e. $. 1031 Replacement Calculator; Calculate Your Deadlines; Loan-to-Value (LTV) Calculator;. This type has some timing rules, including that you have 45 days from the date of sale of the relinquished property to identify potential replacement properties in writing to your QI and 180 days from the date of sale of your relinquished property to. 303-684-6899. rent. Reverse 1031 Exchange Time Periods. KEEP: WorkSheet #1 - Calculation of Basis WorkSheet #s 2 & 3 Calculation of Exchange Expenses Information About Your Old Property WorkSheet #s 4, 5 & 6 Information About. See section 470(e)(4). 45 Day Deadline: You must identify your replacement properties to your qualified intermediary by midnight of the 45th calendar day following the close of selling the property. 040, requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or hold all client funds in a qualified escrow account or qualified trust. Enter values in the fields shown below to calculate the tax savings of a forward 1031 exchange. Like Kind Exchange Calculator. Enter the currency pair in a cell using this format: From Currency / To Currency with the ISO currency codes. The boot refers to the difference in price if you use the 1031 exchange to buy a property worth less than the one you’re selling. Computing Gain For Multi-Property 1031 Exchange. Needed alone 10 inputs into a uncomplicated Excel spreadsheet. 180 Day Deadline: You must finish your 1031 exchange (which includes the conveyance of title to all of your like-kind. Enter the pertinent information in the new asset received along with the Name or number of primary asset in like-kind exchange (code 279) of the two assets given up by pressing and entering Asset 1's asset number on one line and Asset 2's asset number on the second input line. 310. Follow our step-by-step guide on how to do paperwork without the paper. Even if you did not close on your Replacement Property until the following year, Form 8824. (877) 797-1031. This calculator is designed to calculate recognized loss, gains and the basis for your newly received property. Normally, when a taxpayer sells property, gain or loss on the sale is recognized in the tax year in which the sale occurs. Suite 100. Subtract the amount realized from the cost basis of the new property and add the depreciated basis back in. 14670 Cantova Way #220. §1. While Legal 1031 will make every effort to keep this reference page current. Control how and when you face taxes. WorkSheet #10 – Calculation of Recapture for Form 8824, Line 21Say you paid $20,000 for a piece of business or investment real estate and sold it for $30,000 ($30,000 - $20,000 = $10,000 capital gain). Proc. TX Location: 2106 E State Hwy 114 #407, Southlake, TX 76092. Germs germ preschool 1031 excel nara designlooter lessons kuprik reino1031 like kind exchange calculator 1031 irs pdffiller calculation fillable faxSpreadsheet excel calculator amortization expenses 1031 fmla amortize budgeting naturalbuffdog. 1031 Exchange Worksheet Excel Master of Documents. Open the template in the online editing tool. Open the business Schedule where the asset needs to be linked to (Schedule C, Schedule E Worksheet, etc). . Contact Us. What is a 1031 exchange?Like kind exchange worksheet / completing a like kind exchange in the ️1031 exchange worksheet excel free download| goodimg. Section 1031 sets specific time periods on the identification and receipts of replacement property. Web requires only 10 inputs into a simple excel spreadsheet. Cost to purchase in 2001 = $135,000. 1031k-1 (g) (6) places limitations on. A like-kind exchange, or 1031 exchange, can only be completed for real property. All 1031 exchanges have to be. Number of years owned. Edit your 1031 exchange worksheet online. Single-Family Versus Multifamily Investing. Treas. A 1031 exchange means that if you exchange your property with a like-kind property, any gain on the value difference will not be charged to tax under capital gains. 1031 Property Exchange for Excel is designed for investors, real estate brokers and facilitators allowing to: Balance equities. Refresh the Exchange Data. 4700 W Daybreak Pkwy. Contact our 1031 exchange professionals today to discuss the details of your exchange. If the EAT has begun the exchange by acquiring the Replacement Property, then the Exchanger must identify within 45 days after the. With the help of a QI like 1031X, you can: Access larger real estate investments, faster. Mortgage balance = $100,000. The template can. Web realty exchange corporation has created this simple capital gains. In practice, virtually any two types of real estate are like-kind. Total tax liability = $40,700 (Click for the 1031 Exchange calculator). 1031 Exchange Capital Gains Taxes. 1031 exchange irs 1031 exchanges in iowa Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don re which. You can defer capital gains tax if you use the money from the sale to buy another asset of the same type. Amount of yearly depreciation info_outline. Main Reasons Not To Do A 1031 Exchange. 25. Few real estate exchanges are multi-asset exchanges. For starters, we’ll add detail to our earlier reference to the. To offset the taxable gain on the cash boot received, Taxpayer A performed a cost segregation study and accelerated $600,000 of depreciation deductions utilizing Section 481 (a. Size: 116. S. Definition of real property. If the final replacement property is transferred in the next. Thanks very much. + Closing cost: $12,500. We’ll be happy to help you with calculating your 1031 Exchange, please give us a call 215-489-3800. 1031 Exchange Rules. §1. 2000-37, as modified by Rev. 0. Many factors are involved in calculating taxes, including factors unique to each taxpayer. Like-kind exchanges -- when you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind” -- have long been permitted under the Internal Revenue Code. 2. Amount of yearly depreciation info_outline. (877) 797-1031. She wants to do a 1031 exchange into a $325,000 condo. That 180 day period starts the day after closing (the day after the date of closing). This calculator will help you to determine the tax deferment. This calculator is designed to calculate. IRS Form 8824, the 1031 Exchange form, is where you report your Section 1031 Exchange – Delayed, Reverse, or Construction. The capital gain tax on appreciation in value goes up from 15% to 20% when “Taxable Income” exceeds $492,301 (single) or $553,851 (married filing jointly). 1031 exchange basis worksheetLike kind exchange worksheet form Worksheet qualified capital dividends tax gain 1031 exchange form irs 1040a excel agreement db1031 accountants sec. That’s $900,000 in capital gains. IRS Form 8824, the 1031 Exchange form, is where you report your Section 1031 Exchange – Delayed, Reverse, or Construction. To calculate the triple net lease price for each tenant in your property, add this monthly cost total to the monthly rental rate per square foot and multiply. ”. What is a 1031 exchange? A 1031 exchange, named after section 1031 of the U. The taxable amount of the transaction. The replacement property is generally of equal or greater value. To pay no tax when executing a 1031 Exchange, you must purchase at least as much as you sell (Net Sale) AND you must use all of the cash received (Net Cash Received). com. com 1031 Exchange Specialists, Inc is not engaged in rendering legal, tax, or accounting services. One should not place confidence in this nor any calculator on 1031gateway. you have to know the basis in each property for purposes. Instead, the replaced property receives the carryover basis of the exchanged property. Using the capital gain calculator will help you determine the total tax you need to pay on any profit you've earned through the sale of an asset. 1031 Exchange rules require the “replacement property” to be like kind to the “relinquished property. Source: live-worksheet. ” If - you would like a copy of this copyrighted spreadsheet, please provide us with your email address. *Federal Capital Gain s Tax is between 15-20% depending upon annual household income. Related-party exchanges present special challenges and the IRS has aggressively gone after “indirect” related-party exchanges. Learn how to fill out the IRS Form 8824 for your 1031 exchange with this comprehensive workbook and worksheet, updated for 2019. This calculator is designed to calculate recognized loss, gains and the basis. The 1031 exchange can be particularly helpful if you want. Let's create the formula for straight-line depreciation in cell C8 (do this on the first tab in the Excel workbook if you are following along). Qualifying property must be held for use in a trade or business or for investment. Now you want to purchase a new property for $700,000. How to fill out form 8824 worksheet: 01. WorkSheet #1 - Calculation of Basis WorkSheet #s 2 & 3 - Calculation of Exchange Expenses - Information About Your Old Property WorkSheet #s 4, 5 & 6. Solved Please help me with this 2019 tax return. A. We hope that this worksheet will help with these reporting issues that present difficulties in reporting 1031 Exchanges. $25,000 Depreciation. Like kind property is defined in IRC §1031, which is why such exchanges are often called §1031 exchanges. Accumulated Depreciation multiplied by 25% deprecation capture tax rate = total Depreciation Recapture Tax that will be due along with the capital gain tax to the IRS without a 1031 exchange. For those who haven’t done a 1031 exchange before, things can quickly get confusing. A guide to the uk property purchase cycle Worksheet qualified capital dividends tax gain form 1031 exchange irs 1040a excel foreign greenback explained. Download the PDF for free and follow the step-by-step instructions. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment. “The term ‘1031 exchange’ gets its name from the Internal Revenue Service code, Section 1031,” says Eachan Fletcher, CEO and co-founder at NestEgg. Suite 200 Denver, CO. Although Section 1031 applies to the exchange of all real property, this article uses real estate-specific examples.