Many taxpayers have heard of the tax-saving benefits of 1031 exchanges, but don’t know where to begin. Here’s what you need to start a 1031 exchange of real estate or personal property.
Contact A Qualified Intermediary
First thing’s first, contact a qualified intermediary! This should be the first step in any 1031 exchange. Your intermediary will advise you on the details of your exchange, answer your questions, and request all the required information from you to compile the 1031 exchange documents.
Provide Your Information to Your Intermediary
After you have contacted your intermediary, you should start compiling information regarding your transaction. Your qualified intermediary will need all of the following information to begin your exchange:
- Your personal identification information. Your name, SSN, and contact information.
- The name and contact information of your title company.
- Copies of the purchase agreement and title report.
Using this information, your qualified intermediary will begin drafting your 1031 exchange documents and have these ready when you close on your replacement property.
Identification of Replacement Properties
Once you’ve completed the sale of your relinquished property, it’s time to identify your replacement properties in writing. Your qualified intermediary will help advise you on replacement properties and help prepare the required identification forms.
Twin Cities Qualified Intermediaries
If you are selling real estate, consider deferring your capital gains taxes with a 1031 exchange. With decades of experience, Commercial Partners Exchange Company is the go-to for your like-kind exchange needs. Contact our Twin Cities qualified intermediaries today to discuss the details of your exchange. Our main office is located in downtown Minneapolis, but we help clients throughout the state of Minnesota and the rest of the country. Defer your taxes and maximize your gains by starting your 1031 exchange today!
- 1031 Hotline: If you have questions about items you need to start a 1031 exchange, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2017 Copyright Jeffrey R. Peterson All Rights Reserved