Do I have to sign my ID letter or can I just send an email?

The 1031 Regulations state that the ID letter must be signed by the exchanger or exchanger legal agent.  The signed ID letter can be scanned and delivered as an email attachment but listing the properties in the body of an email would not be sufficient.

If I sell rental property can I buy land to complete my 1031?

Yes, both are “like-kind.”  However, land is not a depreciable asset, so be aware that you will trigger some tax consequence on the recapture of the depreciation taken on the improved property.  Depreciation taken on a relinquished property cannot be rolled forward into a non-depreciable replacement property.

Can I put a replacement property under contract before I submit an ID Letter?

You can.  There is no requirement that you identify property to your QI before you submit a contract,  though we recommend that you insert 1031 language into your replacement contract if possible. As a matter of fact, you can even enter into a replacement contract before your relinquished property has even closed.  The only ID […]

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