There’s a lot to keep in mind when you’re conducting a 1031 exchange of investment or business real estate. In this article, we are going to offer up a few essential 1031 exchange tips:
Missing the identification deadline does not just delay your exchange, it usually disqualifies it entirely.
Ownership structure matters. How title is held on the sale must align with how replacement property is acquired.
Reinvesting all your cash does not guarantee a fully deferred exchange if debt replacement is overlooked.
A qualified intermediary must be engaged before closing. Once you have actual or constructive receipt of the sale proceeds, the opportunity for a 1031 exchange is lost.
Like-kind property does not mean same use or same property type. Most US real estate qualifies as like-kind to other US real estate.
You are not limited to identifying just one replacement property. The rules allow flexibility, if you know how to use them.
The 45-day identification deadline is absolute. Plan ahead.
Defer Your Capital Gains Tax Burden with a 1031 Exchange
Defer your capital gains tax burden when selling investment or business real estate by engaging in a 1031 exchange transaction. Section 1031 of the Internal Revenue Code offers an excellent opportunity to defer your taxes and build your wealth over time in a continuation of your investment. The qualified intermediaries at CPEC1031, LLC have been facilitating 1031 exchanges of all shapes and sizes for decades. Let us help you through the details of your next like-kind exchange and start deferring your capital gains taxes!
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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