There are many factors that you need to take into account when beginning a 1031 exchange. In this article, we are going to explain how to figure out if a 1031 exchange is a good fit for your situation.
Questions to Consider
Here are some questions to consider that will help you determine whether a 1031 exchange is a good option for you:
- When are you closing on the sale of your relinquished property?
- How have you used the relinquished property?
- How long have you owned the relinquished property?
- How do you hold title to the relinquished property?
- What is the Fair Market Value of the relinquished property?
- What is the estimated amount of sales proceeds?
- How much did you pay for the old relinquished property when you purchased it?
- What is your estimated remaining basis or current adjusted basis in the property?
- What title company - or law office is closing the relinquished property?
- What is the value of replacement property?
- How do you plan to take title to your replacement property?
- Will you have debt on your replacement property?
All of these items must be taken into account to determine whether or not you can move forward with a 1031 exchange. To find out if you are a good candidate for a 1031 exchange, fill out our form.
MN 1031 Exchange Services
At Commercial Partners Exchange Company, we have decades of experience helping taxpayers navigate the 1031 exchange process. If you are selling real estate or an item of personal property, a 1031 exchange may be able to help you defer capital gains taxes on the sale. Start realizing the benefits of a 1031 exchange today and defer your gains on the sale of real property! Our primary office is located in downtown Minneapolis, but we serve clients throughout the country. Contact us today to speak with one of our qualified intermediaries about your 1031 exchange.
- 1031 Hotline: If you have questions about whether a 1031 exchange is right for you, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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