Sometimes people contact a qualified intermediary after they’ve already purchased a replacement property and they want to sell a relinquished property and do what they think is a reverse exchange. However, a reverse 1031 exchange is not a retroactive 1031 exchange. A reverse exchange under Rev. Proc. 237 is really a parking arrangement where you have the qualified intermediary form an LLC to become your surrogate purchaser of that replacement property and hold it for up to 180 days. During that holding period you sell your relinquished property. A reverse exchange is not a retroactive exchange in which you are allowed to acquire the replacement property on your own and then sell your relinquished property later.
Defer Capital Gains Taxes and Continue Your Investment with a 1031 Exchange
A 1031 exchange allows you to defer capital gains taxes while continuing your investment when selling qualifying property that’s held for investment or business use. CPEC1031, LLC can help facilitate your 1031 exchange transaction and make sure you meet all the necessary benchmarks during the process. Our qualified intermediaries understand the ins and outs of section 1031 of the Internal Revenue Code. We’ve been working in the like-kind exchange industry for over twenty years and can help you through the details of your next 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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