There are many things to consider in a 1031 exchange, but before you begin the process, you need to ask yourself a few basic questions. In this article, we are going to walk through a few questions to consider before starting your 1031 exchange of real estate.
Does Your Property Qualify for 1031 Exchange?
The first question you need to ask yourself is: “does your property qualify for 1031 exchange?” This question is important because some property is not eligible for 1031 exchange treatment. Personal property is excluded outright. Only real property is eligible for 1031 exchange. But not all real property qualifies either. Only real property held for investment or business use is eligible. That means if you are holding your real property for personal use, you won’t be able to use it in a 1031 exchange.
What Replacement Property Do You Intend to Exchange Into?
It’s also important to think about what type of replacement property you want to exchange into. You have only 180 days to complete the exchange once you begin, so it’s important to get a jump on the process and start thinking about your replacement property beforehand so you have plenty of time.
We’re Here to Help You Through the 1031 Exchange Process
The qualified intermediaries at CPEC1031, LLC are here to help you through the 1031 exchange process. Let our team of professionals help you with all the details surrounding your like-kind exchange of real estate. Contact us today to learn more about the process of conducting a 1031 exchange and see how you can benefit from 1031 tax deferral. Our office is located in downtown Minneapolis but we work with clients throughout the entire state of Minnesota, as well as the United States as a whole.
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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