Many real estate investors are aware of reverse 1031 exchanges, but may not know if they’re eligible for one. In this article, we’re going to discuss whether anyone can do a reverse 1031 exchange and when someone might find it beneficial.
Reverse 1031 Exchanges
As with all types of 1031 exchanges, reverse exchanges under section 1031 of the Internal Revenue Code are available to any US taxpayer. As long as you own qualifying investment real estate in the United States, you can conduct a reverse like-kind exchange.
When to Consider a Reverse Exchange
Now that you know reverse exchanges are available to all US taxpayers, the next thing to think about is when to consider a reverse exchange. Reverse exchanges are a particularly helpful tool in hot real estate markets when it may be difficult to find an ideal replacement property within the 180 day like-kind exchange time period. With a reverse exchange, you can lock up your replacement property first, and then sell your relinquished property after the fact (while still completing everything within 180 days).
Does Your Property Qualify for 1031 Exchange?
If you own real estate that you’re holding for investment purposes or for use in your trade or business, then you are eligible to defer your capital gains taxes via a 1031 exchange. At CPEC1031, LLC we are your one-stop-shop for 1031 exchange resources. Our qualified intermediaries can walk you through every step of your 1031 exchange – making sure you are fully informed and prepared at all times. We’ve been helping taxpayers in the 1031 exchange industry for more than twenty years. Give us a call today to learn more about the 1031 exchange process and how we can help!
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.
© 2024 Copyright Jeffrey R. Peterson All Rights Reserved