Internal Revenue Code 1031 has been in existence since 1928. This section of the tax code establishes guidelines for the seller of real property to reinvest in other “like kind” property without paying capital gains tax.       We are not tax attorneys and recommend you consult one but here are some general rules. 1. The properties sold and acquired must be used for a trade, business or for investment purposes. 2. The property to be acquired must be identified within 45 days of the closing date of the property sold. 3. The property identified must then be acquired within 180 days of the closing date of the property sold. 4. Neither the seller nor their agent can control the money. Qualified Intermediaries, i.e. certain Title Companies are used to receive, hold and disburse funds.     Once again 1031 Exchanges can be complex so see a tax attorney or seek other professional help. If you decide to pursue a tax free exchange consider farmland as a replacement property. Farmland has an outstanding investment track record without many of the headaches of what is considered conventional real estate. Land Property Associates has a large number of farmland investment properties available for your tax free exchange.

Land Property Associates • 7751 Carondolet Ave. • Clayton, MO. 63105 Phone: 314-862-0245 • E-mail: roy@landproperty.com Copyright © 2003 Land Property Associates. All rights reserved

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