1031 exchanges are complex and many people have questions about how they work. In this article, we are going to answer three of the most frequently asked questions about 1031 exchanges.
Why Should I Consider a 1031 Exchange When I Could Just Sell My Property?
If you sell your property in a typical transaction, you will be required to pay capital gains taxes on the sale. Depending on the property involved, this can be a sizeable bill. A 1031 exchange allows you to defer those capital gains taxes and put that money into a continued real estate investment.
What is a Qualified Intermediary & Why Do I Need One?
A qualified intermediary is a professional who specializes in the facilitation of 1031 exchanges. Your qualified intermediary will be able to advise you throughout your exchange, prepare your 1031 exchange documents for closing, and also insulate you from receiving any of the net proceeds from your sale. Working with a qualified intermediary is perhaps the best way to ensure a successful exchange.
How Long Do I Have to Complete my Exchange?
There are two important deadlines to remember with any 1031 exchange. The first is 180 days. You have 180 days total to complete your exchange. The next important deadline is 45. The first 45 of those 180 days are set aside as your identification period. This is the period of time in which you need to identify your replacement property.
Real Estate Exchange Company
1031 real estate exchanges allow you to save money on taxes and keep your money compounding and building wealth in a continued investment. The qualified intermediaries at CPEC1031, LLC have twenty years of experience in the 1031 exchange industry. We work with clients through every stage of the 1031 process, prepare all the requisite documents, and answer any questions that arise along the way. Contact us today to set up a time to chat with one of our qualified intermediaries and learn more about how you can defer your capital gains taxes on the sale of your real property.
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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