There are a lot of complexities when it comes to 1031 exchanges of real estate. In this article, we are going to offer up a few tips for navigating the ins and outs of a 1031 exchange.
Tip 1 – Work with a Qualified Intermediary
The most important tip we can give you is to work with a qualified intermediary on your 1031 exchange. An intermediary is someone who knows section 1031 backwards and forwards and can help you with every aspect of your exchange. They are the most important advisor you can have by your side throughout the 1031 exchange process.
Tip 2 – Know the Rules
It’s essential to have at least a basic understanding of the rules that govern 1031 exchanges of real estate. This includes the timing rules, the qualified purpose rule, among others.
Tip 3 – Don’t Wait Until the Zero Hour
Lastly, it’s always a good idea to prepare, prepare, prepare as much as possible for your exchange. If you are thinking about doing an exchange, start looking into the details well before you intend to sell your relinquished property. This will give you and your intermediary enough time to effectively prepare everything that needs to happen to ensure a successful exchange.
1031 Exchange of Real Property
CPEC1031 prides itself on providing top-notch services to taxpayers around the country who are looking to exchange their property under section 1031. Our qualified intermediaries can help you through each and every step of your exchange. We can advise you on identifying replacement property, prepare all of your documents, and answer any questions you might have along the way. Contact us today at our Minneapolis office, or any of our satellite offices across the United States to set up a time to chat about your exchange.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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