1031 exchanges allow you to defer large capital gains tax bills on the sale of real property. The 1031 exchange is a fantastic vehicle for building your wealth over time. Contact our Nebraska 1031 exchange intermediaries today to get started with your like-kind exchange - 402.913.1031.
An Explanation of the 1031 Exchange
Let's star with a brief explanation of how a 1031 exchange works. Below we have listed the basic steps of a 1031 exchange:
- Sale of Relinquished Property. First, the taxpayer conducting the exchange sells their relinquished property. But instead of acquiring the sales proceeds, they keep those separate with the intention of moving them into their new replacement property.
- Identification of Replacement Property. After you sell your relinquished property you have 45 days to identify your new replacement property.
- Close on Replacement Property. Within 180 days from the sale of your relinquished property you need to close on your replacement property and move all of your sales proceeds into that property.
1031 Exchange Requirements
The IRS has many rules that govern the exchange of property under section 1031. All property involved in the exchange needs to be held for investment or business purposes. Property held primarily for personal use (such as your primary residence) is excluded. You need to complete your exchange within 180 days after the sale of your relinquished property, and both your relinquished property and your replacement property need to be like-kind.
1031 Exchange Resources
It can be difficult to find reputable information about 1031 exchanges on the web. Here are some resources that may be of help as you research your 1031 exchange:
Nebraska Qualified Intermediaries
If you are considering a 1031 exchange of real property in Nebraska, look no further than Commercial Partners Exchange Company. Our qualified intermediaries have been assisting taxpayers in Nebraska with their like-kind exchanges for decades. Give us a call today at 402.913.1031 to start your 1031 exchange. We have also listed our Nebraska office address below for your convenience:
1299 Farnam Street
Omaha, NE 68102