The 1031 exchange process has many important deadlines and requirements that you need to meet in order to have a successful exchange. This article will offer up a step-by-step checklist for completing a 1031 exchange of real estate.
Step 1: Planning & Preparation
The first step in the 1031 exchange process is one that many overlook. Before the 1031 exchange clock starts ticking, you should begin with planning and preparation. Speak with a qualified intermediary before you sell your relinquished property to make sure you have everything set up for a successful exchange.
Step 2: Selling Your Relinquished Property
Your exchange begins in earnest when you sell your relinquished property. This sale automatically starts the clock on your 180 day exchange period. You must complete your exchange by the 180th day or else your exchange will fail.
Step 3: Identifying Your Replacement Property
The first 45 days of your 180 day exchange period are what’s known as your “identification period.” During this time, you must give written identification of the replacement properties that you intend to acquire in the exchange.
Step 4: Acquiring Your Replacement Property
Before the 180th day of your exchange period, you must acquire your identified replacement property. If you satisfy all the requirements in these steps you will be able to defer your capital gains tax burden!
Find a Qualified Intermediary for Your 1031 Exchange of Real Estate
Contact CPEC1031, LLC to speak with a qualified intermediary about your next 1031 exchange of real estate. Our team of intermediaries has more than two decades of experience facilitating 1031 exchange of real estate in Minnesota and across the United States. We can help you through all the details of your next exchange by preparing documentation, answering your 1031 exchange questions, and guiding you through the 1031 exchange process. Reach out to our team of intermediaries at our Twin Cities office, located in downtown Minneapolis.
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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