People call me up all the time with the following 1031 situation: they’ve already closed on the sale of their relinquished property and they've got the check. And they think that they've got 45 days to identify replacement property for 1031 exchange.
Once you receive the check (cha-ching!) you have a recognition of gain because you realized it and you have actual receipt of the money. If you say, “I didn’t touch the money. I gave the money to my attorney.” It doesn’t matter. You still have constructive receipt because your attorney is your agent, an extension of you. So you've got to set up the 1031 exchange before the closing takes place.
Get Your Like-kind Exchange Off the Ground
Contact CPEC1031, LLC today to get your like-kind exchange off the ground and start deferring capital gains taxes on the sale of investment real estate. Anyone can avail themselves of the tax benefits of section 1031, but there are many rules and requirements you must meet in order to defer your capital gains tax burden. Working with a qualified intermediary is the best way to ensure you hit all of your deadlines and requirements during the 1031 exchange process. Contact us today to set up a time to chat with our 1031 intermediaries.
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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