Abc's Of 1031 Exchanges/double Escrows And Capital Gains
Hello,
Been reading up on the above.. I am a beginner and the more I think I know, the more I find out that there is to learn! Wheeewwww!! btw, I am taking a principles course in the fall so hopefully that might help me with some of these topics...
I've been reading some of the posts and I think I get what capital gains are, but I am a little unsure (although I get some of the picture/meaning of this), can someone tell me what these two mean. in a nutshell? please? thanks for your time.. here it is:
1. 1031 Exchange
2. Double Escrow
You all are the best.. thank you for all your help 
I will address the 1031 exchange portion of your question.
1031 Exchange refers to Section 1031 of the Internal Revenue Code. The 1031 Exchange allows an investor to sell property they have been HOLDING as investment property or property they have used in their business and acquire like-kind replacement property that they INTEND to HOLD as investment property or property used in their business. The key CAPITALIZED words are important, because the investor/taxpayer/exchangor must have the INTENT to HOLD any property involved with a 1031 exchange for investment or business property. If you actually INTEND to buy, fix-up and then flip you do not have the INTEND to HOLD and therefore technically do not qualify for 1031 exchange treatment. Also, to clear up some misinformation that has been circulated for years, ANY type of real estate is considered to be like-kind to ANY other type of real estate for 1031 exchange purposes provided the taxpayer has HELD the properties for investment or use in their business. So, you can sell an apartment complex and buy a commercial/industrial property, or you could sell a couple of single family homes and acquire a retail center, or you could sell vacant land and acquire multi-family property (apartments), etc.
You have two time frames to adhere to when you are structuring a 1031exchange transaction. They both start running the day you close escrow on your relinquished (sale) property. So, if you closed and the buyer received title to your relinquished property today, then tomorrow would be day number one.
You have 45 calendar days to identify what you intend to acquire and most taxpayers will utilize the three (3) property rule, which means you identify up to but not more than three (3) properties as potential like kind replacement properties. You may acquire one, two or all three of them (the 1031 exchange is a great method for investors to diversify from one to many or to consolidate from many into one properties and restructure their portfolios accordingly with out paying any capital gain taxes).
You have a total of 180 calendar days in order to complete your 1031 exchange and receive title to your replacement property(ies). It is NOT 45 plus 180 calendar days. It is a total of 180 calendar days from the close of your relinquished property.
Notice that I have indicated in both cases that it is calendar days, so that if the actual due date falls on a Saturday, Sunday, or holiday, the due date is NOT extended and does fall on that date.
This does not include all of the 1031 exchange requirements and is actually a concise overview, but will give you a good summary flavor of the process. I would be happy to answer any other questions that you might have.
Double Escrow is most often used in the context of a double closing, or a simultaneous closing wherein the investor is concurrently selling the property he is buying.