The year 2000 was a watershed year for 1031 exchanges. Prior to that, we didn’t have any guidance on reverse 1031 exchanges. In a reverse exchange, the replacement property is acquired first, before the relinquished property is disposed of. There are two ways to do a reverse exchange:
You can have the qualified intermediary acquire the replacement property and act as your surrogate purchaser and hold it for up to 180 days, or
You can do a “front-leg” reverse exchange in which you convey your unsold relinquished property to the qualified intermediary so you can move forward and acquire the replacement property as you normally would. This works well when you have a lot of cash.
In either case, you only have 180 days to complete your reverse exchange. You must get that relinquished property off your books and legitimately sold to an unrelated third party within 180 days.
Contact a Qualified Intermediary Near You
Find a Qualified Intermediary near you to assist with the details of your next 1031 exchange of real estate. CPEC1031, LLC has been working with taxpayers throughout the country for decades on like-kind exchanges of all types. Our team of 1031 professionals are here to help you through all the details of your next like-kind exchange. Let us guide you through the process and make sure you do everything necessary to get 100% tax deferral on your exchange.
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