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.
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