There are many rules relating to properties that can be used in a 1031 exchange and many people get confused trying to navigate the 1031 exchange process. In this article, we are going to explain whether you can do a 1031 exchange involving multiple properties if the value of the sale is less than that of the purchase.
Multiple Replacement Properties
It is possible to acquire several replacement properties through a 1031 exchange, provided that they are appropriately designated in writing within the 45-day identification period and received within the 180-day exchange period. This period commences on the day following the closing of the first relinquished property.
However, it is advisable to consult with your real estate agent as well as your CPA or tax attorney as a tight inventory of potential replacement properties may necessitate meticulous planning and strategy to ensure that your tax deferral is maximized and all factors are aligned.
Get Help with your 1031 Exchange
Get the help you need with your 1031 exchange of qualifying real estate today by contacting the qualified intermediaries at CPEC1031, LLC. Our team has over two decades of experience in the like-kind exchange industry. We have the knowledge and experience to make sure your 1031 exchange is a resounding success. We have helped taxpayers across the United States defer capital gains taxes on the sale of investment real estate. We are well equipped to help you do the same! Contact us today to learn more about how we can help with your next 1031 exchange of real estate.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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