What clause needs to be written in a contract in order to accomodate a 1031 tax deferred exchange?
It's very simple, really: "Purchaser will cooperate with Seller in a 1031 Tax Free Property Exchange. There will be no expense to the purchaser for cooperating in the tax free exchange".

There are many other important date considerations with a tax deferred exchange, however, that can have significant tax consequences, so it is imperative that you work with experienced providers in this area.

Posted By: Colleen Starr on Sunday, December 13, 2009