Diving into a 1031 exchange of real estate can be a daunting task – especially for those who have never done a 1031 before. But it’s actually a pretty straight-forward process. In this article, we are going to explain how to take that first step in starting the 1031 exchange process for your property.
First – Talk to a Qualified Intermediary
The first thing you need to do is find a qualified intermediary. 1031 intermediaries are well-versed in all aspects of section 1031 of the Internal Revenue Code. They will be able to advise you on the process, your best options, and facilitate the exchange for you. Involving a qualified intermediary early in the process is key to ensuring a smooth exchange. Before you begin the required paperwork of a 1031 exchange, your intermediary will have a discussion with you about the property you’re selling and whether or not you are a good candidate for 1031. Here are some of the questions they may ask during this initial phase:
What is the nature of your relinquished property? Is it held for personal use, or investment purposes?
What is the value / equity / debt on your property?
How do you own the property? As an individual, or through a business entity?
When do you intend to close on the property?
CPEC1031
At CPEC1031, we have more than two decades of experience helping investors of all sizes with their like-kind exchanges of real estate. We can put that experience to use on your exchange by helping guide you through the process and ensure that you have everything taken care of. Contact our intermediaries to chat about your exchange today. Our main office is located in downtown Minneapolis, but we serve the entire state of Minnesota, as well as the greater United States.
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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