Over the past 20+ years in the 1031 exchange industry, we’ve seen taxpayers make a lot of costly mistakes when conducting 1031 exchanges. In this article, we’re going to talk about some of the biggest mistakes you can make when doing a 1031 exchange.
Common 1031 Exchange Mistakes
Here are a few of the more common 1031 exchange mistakes we see taxpayers make:
Perhaps the most common mistake people make when navigating a 1031 exchange is not establishing a working relationship with a qualified intermediary (QI) before closing on the relinquished property.
Another major pitfall is failing to follow the strict 45-day and 180-day timelines. It’s important to remember that you only have 180 days total from the start to the finish of your exchange. On top of that, during the first 45 of those days you need to identify your replacement properties.
Pro tip: Always reach out to a qualified intermediary like CPEC1031 first, even when you're just thinking about a 1031 exchange. An intermediary will be able to tell you how to best proceed with your exchange so you have the best chance of deferring 100% of your capital gains taxes.
1031 Exchange Professionals in Minneapolis, MN
The like-kind exchange professionals at CPEC1031, LLC have more than twenty years of experience working on 1031 exchanges in Minnesota and throughout the entire country. Regardless of the details of your like-kind exchange, we can help you through the process from start to finish and make sure you have all the information necessary for the closing table. Our qualified intermediaries are ready and waiting to assist you through the intricate details of your next 1031 exchange. Contact us today to get started with your like-kind 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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