If you do a reverse exchange and you have the intermediary park the replacement property and hold it for your benefit, eventually (within 180 days) you need to sell or dispose of that old relinquished property so you can then acquire the parked replacement property.
Pro Tip
Here’s a pro tip - before you sell your relinquished property you need to notify the qualified intermediary so that they can prepare the appropriate 1031 documents, notices, and closing instructions related to the sale of your relinquished property. Just because you parked the replacement property doesn't mean that the intermediary’s job is done as it relates to the sale of your old relinquished property.
Assemble Your Team
Bring in your team, assemble them early, and give everybody notice of what's going on so you can get the best result on your 1031 reverse exchange.
Start Your 1031 Exchange: If you have questions about reverse 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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