There are many important things to remember when it comes to 1031 exchanges of real estate. In this article, we’re going to talk about a few 1031 exchange essentials that you should always bear in mind during the like-kind exchange process.
Intent is Key
Before you begin a 1031 exchange, you need to make sure you have the right intent with your property. All property involved in your 1031 exchange needs to be held for investment or business purposes (not personal use). Are you holding your relinquished property with that mindset? Do you plan on using your replacement property for business or investment purposes? These are important questions to consider before you even begin your exchange.
Like-Kind Is Defined Broadly
All property in a 1031 exchange must be like-kind with one another. The good news is that the definition of “like-kind” in the realm of 1031 exchanges is quite broad. Basically all United States real estate is considered like-kind. So as long as your real property is held for investment or business purposes, you can use it in your 1031 exchange.
Get Help with Your Tax-Deferred Exchange of Real Estate
Get the help you need with your tax-deferred exchange of real estate by contacting the qualified intermediaries at CPEC1031, LLC today. With over two decades of experience, we are well suited to help guide you through all the ins and outs of your next 1031 exchange of real estate. Our qualified intermediaries have helped countless people defer taxes with 1031 exchanges and we can help you too! Reach out to our 1031 exchange professionals today to learn more about the 1031 exchange process and how we can help.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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