In a 1031 exchange, timing is everything and many investors have questions about when to take action during the exchange process. A lot of timing questions come up when dealing with replacement property. For example, when should you begin to look for replacement property? Can you begin before you sell your relinquished property? That’s our topic for this article.
Replacement Property Timing
When you begin a 1031 exchange by selling your relinquished property, the clock immediately starts ticking. At that point, you’ve only got 180 days to finish up your exchange. The first 45 of those days are set aside as your exchange period. This is the time during which you need to identify in writing the replacement property that you wish to exchange into.
That being said, it’s never a bad idea to start early and lay the groundwork for a successful exchange. You can certainly start looking for replacement property before you begin your exchange. In fact, doing so is a good strategy to ensure that your exchange runs smoothly.
1031 Exchange Services in MN
If you are searching for 1031 exchange services in Minnesota, you’ve come to the right place! CPEC1031 has been facilitating exchanges of real property for more than two decades. Our intermediaries can help you navigate the 1031 exchange process and, ultimately, save money in capital gains taxes. Contact our team today to learn more about our services and discuss the specifics of your like-kind exchange. You can find us at our primary office located in downtown Minneapolis. In addition to that, we have satellite offices around the country.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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