From an investment viewpoint, the question has no standing. Timing plays no (zero) role for determining the use of a 1031 exchange. A 1031 exchange is a conduit (with certain requirements that must be followed) between the sale and purchase of like property. Section 1031 of the Internal Revenue Code, 26 U.S.C. § 1031 provides that no gain or loss shall be recognized when the seller’s profit or gain is held for productive use in a trade or business or for investment. Translated that means the seller has all the net proceeds available from the property’s sale to apply toward another purchase of a like kind property.

The questions that have standing for a potential seller of investment property are:

• Is there a sound financial case for selling my property (NetGain’s EVS system can help with this question)?
• Is buying another property consistent with my personal objectives?
• Are there investment properties available for purchase that have favorable financial aspects (