In any real estate transaction, there is some level of uncertainty involved, and 1031 exchange transactions are no exception. In this article, we are going to discuss how to reduce uncertainty in a 1031 exchange.
Work Closely with Your Qualified Intermediary
The biggest mistake a lot of taxpayers make when it comes to 1031 exchanges is trying to do everything themselves. The best thing you can do is work closely with a qualified intermediary who can walk you through the process and give you all the tools you need to execute a successful exchange.
Start As Early As Possible
In a 1031 exchange time can be your friend or your enemy. There are very strict deadlines that have to be followed in all 1031 exchanges so if you’re scrambling at the eleventh hour, time can really be against you. That’s why it’s best to start working on your exchange as early as possible. Give yourself more prep time than you think you need. Contact your intermediary early in the process and start putting a plan into place.
Line Up Your Replacement Property
Get ahead of the game and start lining up your replacement property early. Once you begin the process, you only have 45 days to identify your replacement property in writing. Doing a little bit of prep work can go a long way in this department.
Like-Kind Exchange Services
At CPEC1031, we offer 1031 exchange services to clients throughout the state of Minnesota and across the United States. Our intermediaries have over two decades of experience and can help you through every step of your transaction. Reach out to us today to learn more about the full range of our services and see how we can help you wit your next exchange. You can find us at our primary office in downtown Minneapolis or at one of our 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.
Defer the tax. Maximize your gain.
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