Let’s say you’re on the fence and not sure if you want to do a 1031 exchange. One of the most pressing questions you have is “how long will my money be tied up in this 1031 exchange?”
The first thing that you need to do is talk with a qualified intermediary before closing. You escrow your proceeds with the intermediary for at least the first 45 days, during which you contemplate whether or not you want to designate replacement properties. If you fail to designate or identify replacement properties by midnight of the 45th day, you’re exchange is over and the intermediary can return your unused funds to you on the next business day.
However, if you identify property your funds will then be tied up until you either acquire the designated property or your exchange period ends (which is either the 180th day or the due date for the filing of your federal income tax return).
Remember, your funds are always immediately available for you to acquire replacement property. But they may not be immediately available to be returned to you during the exchange period.
CPEC1031, LLC – Qualified Intermediaries You Can Count On
At CPEC1031, LLC we offer qualified intermediary services you can count on. For more than twenty years, we have been facilitating 1031 transactions for taxpayers throughout the United States. We can help guide you through the process from start to finish, ensuring you are well informed and set up to defer 100% of your capital gains tax burden. Reach out to our third party intermediaries today to talk about the details of your next 1031 exchange of real estate. You can find us at our primary office located in the heart of downtown Minneapolis.
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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