1031 proceeds

How to Divide the 1031 Proceeds after the Sale of the Relinquished Property

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Recently, a client came to us with the following 1031 exchange situation. The client wanted to purchase a property solely in their name. Here's where it gets complicated: the client wanted to divide the proceeds between two people after the sale. Is this possible to do this and still keep everything within the 1031 strike zone?

Determining How You're Vested in Title

That is a very good question. Everything depends on how the client is vested in title on the old relinquished property. In order to figure that out we can pull a copy of the last vesting deed to confirm how they are currently in title.

For example, do they own the old relinquished property in a trust, an entity (such as a partnership), or do they hold title as tenants-in-common? Once we know how they hold title, then we can look at all of the available options for taking title to the new replacement property.

If you have additional questions about this or other 1031 exchange questions, contact a qualified intermediary today. At CPEC1031, LLC, we have over two decades of experience facilitating exchanges of real estate. Contact us today at our downtown Minneapolis office for help with your next 1031 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

How to Take the First Step in the 1031 Exchange Process

First Step in a 1031 Exchange

Diving into a 1031 exchange of real estate can be a daunting task – especially for those who have never done a 1031 before. But it’s actually a pretty straight-forward process. In this article, we are going to explain how to take that first step in starting the 1031 exchange process for your property.

First – Talk to a Qualified Intermediary

The first thing you need to do is find a qualified intermediary. 1031 intermediaries are well-versed in all aspects of section 1031 of the Internal Revenue Code. They will be able to advise you on the process, your best options, and facilitate the exchange for you. Involving a qualified intermediary early in the process is key to ensuring a smooth exchange. Before you begin the required paperwork of a 1031 exchange, your intermediary will have a discussion with you about the property you’re selling and whether or not you are a good candidate for 1031. Here are some of the questions they may ask during this initial phase:

  • What is the nature of your relinquished property? Is it held for personal use, or investment purposes?

  • What is the value / equity / debt on your property?

  • How do you own the property? As an individual, or through a business entity?

  • When do you intend to close on the property?

CPEC1031

At CPEC1031, we have more than two decades of experience helping investors of all sizes with their like-kind exchanges of real estate. We can put that experience to use on your exchange by helping guide you through the process and ensure that you have everything taken care of. Contact our intermediaries to chat about your exchange today. Our main office is located in downtown Minneapolis, but we serve the entire state of Minnesota, as well as the greater 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved