There are numerous parties involved in any given 1031 exchange – from the taxpayer conducting the exchange to the qualified intermediary, to the title company. In this article, we are going to talk about how much lead time you need to give your title company going into the transaction.
Give Your Title Company Time
In a 1031 exchange, where you only have 180 days to complete your transaction, it’s always a good idea to get ahead of the ball. That goes for your title company as well. You do not want to first contact your title company the day before your closing. Waiting until the last minute to change up your transaction is going to create a lot of headaches for everyone involved – including your title company. If you wait too long, there may not be enough time to prepare the necessary documentation for a 1031 exchange.
Reach out to your qualified intermediary well in advance of your relinquished property closing date. This will give them enough time to prepare all of your required documents, and work with the title company to ensure a smooth transaction. A crazy closing process is nobody’s idea of a good time. Give yourself and your title company plenty of lead time (as much as possible) when doing a 1031 exchange.
Exchange Like-Kind Real Estate
Deferring capital gains taxes on the sale of real estate is easy under section 1031 of the Internal Revenue Code. It’s even easier with the help of a skilled 1031 exchange intermediary. At CPEC1031, LLC, our intermediaries have been facilitating exchanges for taxpayers across the United States for more than two decades. Give us a call today to get started with your 1031 exchange (the earlier you start – the better!). Our primary office is located in downtown Minneapolis, but we work with clients all over the state and country.
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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