Replacement property identification is one of the most important aspects of any 1031 exchange and it’s a potential trap for the unwary. In this article, we are going to offer up a few tips for identifying replacement property options early in the 1031 exchange process.
Deadlines to Remember
Remember – Two dates drive every 1031 exchange:
45 Day Identification Period. You have 45 days to identify replacement property after you sell your relinquished property.
180 Day Exchange Period. You have 180 days total to complete the exchange (or your tax return due date, including extensions, whichever comes first).
Do not wait until closing to start searching for replacement property. Consider Delaware Statutory Trusts (DSTs) as a potential alternative solution for timing, diversification, or passive ownership.
Bottom line: Do the work early and everything about your 1031 exchange becomes easier and more manageable.
1031 Exchange Help
If you are looking for help with your next 1031 exchange of real estate, contact the qualified intermediaries at CPEC1031, LLC today. Our team can help you through the ins and outs of your like-kind exchange of qualifying real property. Don’t get tripped up by all the details involved in a 1031 exchange. Work with a skilled intermediary to ensure you can defer 100% of your capital gains tax burden. Our intermediaries have more than two decades of experience facilitating 1031 exchanges of all shapes and sizes. Let us help you through the details of your next exchange.
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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