How to Properly Identify Real Property in a 1031 Exchange

Properly identifying your replacement property is an important aspect of a 1031 exchange of real estate. But many taxpayers are confused about how to properly identify their replacement property. In this article, we are going to talk about how to properly identify real property in a 1031 exchange.

Unambiguous Description

Section 1031(a)(3) and Section 1.1031(k)-1(c) provides that a written unambiguous description of the intended replacement property or properties, signed by the Exchangor must be sent to the qualified intermediary or other person who is a party to the exchange and who is not a disqualified person.

If you have any questions about how to properly identify your replacement property – ask your qualified intermediary. That’s what they’re there for, to answer any and all of your questions throughout the course of your 1031 exchange.

Are You a Good Candidate for 1031 Exchange?

Are you looking to sell real estate, but are hesitant because of the capital gains taxes you’ll owe on the sale? If so, a 1031 exchange may be the best option for you! The first step in any 1031 exchange is to contact an experience qualified intermediary who can advise and guide you throughout the exchange process. Contact us today to speak with a Twin Cities 1031 exchange professional about the details surrounding your sale. We are located in downtown Minneapolis, but we work with clients throughout the United States.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Does My 1031 Exchange Period Include Weekends & Holidays?

One of the first things you need to know about a 1031 exchange is that you only have a limited amount of time to complete your 1031 exchange. Specifically, you have 180 days in total from the start to the end of your exchange. In this article, we are going to discuss the 1031 exchange period and whether or not it includes weekends and holidays.

Defining Your Exchange Period

Your exchange period begins when you sell your relinquished property (or when you acquire your replacement property if you are doing a reverse exchange). From that point on you have 180 days to complete your exchange. The first forth-five of those days are set aside as your identification period – the time in which you have to identify in writing all of your replacement properties.

Weekends & Holidays

Weekends and holidays are not excluded from your exchange period. All weekends and holidays count as part of your 180 days. Furthermore, if your 180 day deadline falls on a Saturday, Sunday, or on a holiday, you will not get an extension.

1031 Intermediaries in Minneapolis, MN

The intermediaries at CPEC1031 work with clients in all real estate industries on their 1031 exchanges. With more than twenty years of experience, our intermediaries have the skills needed to facilitate your exchange from start to finish. Contact us at our downtown Minneapolis office today to speak with an intermediary about your like-kind exchange and defer your capital gains taxes on your next real estate sale.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Why 1031 Exchange Land Swaps are a Great Investment

Swapping land in a 1031 exchange can lead to big payoffs down the line. In this article, we are going to talk about how 1031 exchange land swaps can result in big results over the long-term.

Recapping the Benefits of Land Exchanges

Section 1031 of the Internal Revenue Code offers all taxpayers the opportunity of deferring their capital gains taxes when they sell real estate so long as they meet certain guidelines. First, the exchanged land must be held for investment or business purposes (not for personal use). Second, the exchange must be completed within 180 days and abide by other strict timeframes. These are just a couple of many rules that must be satisfied in a 1031 exchange. When done correctly, the taxpayer doing the exchange is able to avoid a big tax bill on the sale of their property.

Over the long-term, the taxpayer can watch their investment grow in their replacement property. If and when you want to sell that replacement property, you can consider doing another 1031 exchange to keep the investment ball rolling!

Minnesota 1031 Exchange Professionals

The qualified intermediaries at CPEC1031 have over two decades of experience working on 1031 exchanges. A 1031 exchange accommodator can help you through every stage of your 1031 exchange from start to finish. Specifically, our intermediaries can prepare all of your documentation, advise you on what replacement properties to purchase, and answer all of your questions along the way. Contact us today to get started with your 1031 exchange of real estate. Our primary office is located in the heart of downtown Minneapolis but we work with clients all over the state of Minnesota, as well as throughout the United States.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Competing for 1031 Replacement Property in a Hot Real Estate Market

When the real estate market is hot, finding the right replacement property for your 1031 exchange is all the more difficult. Even when you do find a replacement property that you love, it may get snatched from beneath you before you can close the deal. In this article, we are going to offer some tips when competing for replacement property in a 1031 exchange.

The Reverse Exchange Option

If you are finding it hard to secure the replacement property you want; if all the properties you look at are getting snatched up by other buyers – then a reverse exchange is your best bet. With a reverse 1031 exchange, you can purchase your replacement property before you sell your relinquished property. This is essentially the opposite order of a typical 1031 exchange. Reverse exchanges are especially useful in hot real estate markets when properties are selling fast. A reverse exchange allows you to grab a replacement property without waiting until your relinquished property sale goes through. Then, within the following 180 days, you sell your relinquished property to complete the exchange.

Reverse Exchanges of Like-Kind Property

For more than twenty years, the 1031 exchange accommodators at CPEC1031 have been helping clients defer their taxes with section 1031 of the Internal Revenue Code. Let us help you prepare your documentation, and make sure you hit all of the necessary requirements. Reach out to the 1031 exchange professionals at CPEC1031 today to get your exchange off the ground. You can find us at our main office in downtown Minneapolis.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Pros & Cons of a 1031 Exchange

1031 exchanges offer a great vehicle for deferring capital gains taxes – but they’re not for everyone. Just like any other real estate decision, you should carefully weigh the pros and cons to see if a 1031 exchange is the right option for you. In this article, we are going to lay out some of the pros and cons of a 1031 exchange of real estate.

Pro: Tax Deferral

The number one benefit of a 1031 exchange is that it allows you to defer your capital gains taxes when you sell real estate.

Con: You Don’t Get to Keep Your Proceeds

In any 1031 exchange, you need to move your net proceeds into a new (bigger and better) replacement property. That means you do not get to pocket any of the proceeds from the sale. This may be an issue for taxpayers who are in need of liquid assets.

Pro: Greater Investment in the Long-run

Even though you aren’t able to pocket your sales proceeds, the amount of money you save in tax deferral, as well as the money that will compound in your continued investment make for a greater investment in the long-run.

Real Estate Like-Kind Exchanges

At CPEC1031 we work with clients all over the state of Minnesota, as well as across the country, on their 1031 exchanges of real estate. Our qualified intermediaries have twenty years of experience and can help you with your 1031 exchange documents and answer all of your questions. Reach out to us today if you want to learn more about the benefits of the 1031 exchange, or to start your real property exchange. Our main office is in downtown Minneapolis.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved