The First Thing to Do When Starting a 1031 Exchange

If you are intrigued by the 1031 exchange process and its benefits but don’t know where to begin, you’ve come to the right place! In this article, we are going to discuss some of the essential first steps you need to take to get your 1031 exchange rolling.

Contact a Qualified Intermediary

The first step you should take in any 1031 exchange is to contact an experience qualified intermediary. Your qualified intermediary is your guide for all things related to your 1031 exchange.

Be prepared to answer the following questions during your initial consultation with a qualified intermediary:

·      How do you own the relinquished property?

·      Is the property vested in your own name, in a trust, or a in business entity?

·      Do you have a spouse in title with you?

·      What's the value of your relinquished property?

·      How much debt do you have encumbering the property?

·      When is your transaction closing?

·      Have you secure a replacement property yet?

There will be more questions your intermediary will ask, but these are just a few to get the ball rolling!

Defer Your Capital Gains Taxes

A 1031 exchange can help you defer your capital gains tax burden when selling qualifying real estate. Learn more about the like-kind exchange process by contacting a 1031 exchange company today. At CPEC1031, LLC our qualified intermediaries have over twenty years of experience working on like-kind exchanges across the country. We can help you through every step of your 1031 exchange. Contact us today at our Minneapolis offices to learn more!

  • 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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