Timing is important in any 1031 exchange of real estate. With any exchange, you have 180 days to complete your exchange after you sell your relinquished property. But can you still do a 1031 exchange if you have already signed a contract to sell your relinquished property? That’s our topic for this article.
Setting up a 1031 Exchange at the Last Minute
The answer to the question at hand depends on the timing of your transaction. If you have already closed on the sale of your relinquished property, it is too late to set up a 1031 exchange – even if you have not yet cashed the proceeds check.
However, if you have not yet transferred the benefits and burdens of your property, it is not too late to set up a 1031 exchange. You can still call a 1031 exchange qualified intermediary, and have them set up the exchange prior to closing so you can realize the tax-deferral benefits of a like-kind exchange.
Minnesota Real Estate Exchanges
If you are interested in doing a 1031 exchange but you’ve already signed a contract to sell your property, don’t hesitate to contact a 1031 exchange company as soon as possible. As long as you haven’t closed yet, there is still time to put together the required documents for a 1031 exchange. The qualified intermediaries at Commercial Partners Exchange Company have been helping people with their real estate exchanges for decades. Contact us today at our downtown Minneapolis office to set up your exchange.
- 1031 Hotline: If you have questions about 1031 exchange timelines, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2017 Copyright Jeffrey R. Peterson All Rights Reserved