There are a lot of potential elements that can derail a 1031 exchange if you’re not careful. In this article, we are going to discuss some potential warning signs that could lead to a failed 1031 exchange.
Your Replacement Property Isn’t Big Enough
In order to defer 100% of your gains (which is the ultimate goal of any 1031 exchange) you have to exchange into a replacement property that is equal to or greater than your relinquished property in value, equity, and debt. Make sure you’re exchanging up and not down with your replacement property.
You Miss a Deadline
There are two extremely important deadlines you need to be aware of in a 1031 exchange. You’ve only got 180 days in total from the sale of your relinquished property to the purchase of your replacement property. Within that 180 day time period, there is another time period – your identification period – which runs for the first 45 of those 180 days. It’s important to keep these deadlines in mind at all times because they are quite firm.
Contact Commercial Partners Exchange Company
Commercial Partners Exchange Company has been facilitating 1031 exchanges for over two decades. We are well-respected in the industry and have the resources needed to ensure your 1031 exchange is a resounding success. Our qualified intermediaries can help prepare all of your required documents in advance of the closing table. Contact us today at our primary offices in downtown Minneapolis to schedule a time to chat with our team of qualified intermediaries about the details of your like-kind exchange.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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