Timing is an essential part of all 1031 exchanges of real estate. In this article, we are going to talk about some situations in which you might want to consider delaying the start of your 1031 exchange.
When to Delay Your 1031 Exchange
Here are some situations in which you may want to delay your 1031 exchange:
It’s the Wrong Time of Year. While you can start a 1031 exchange at any time of year, there may be tax considerations to bear in mind when your exchange straddles two separate years.
You Can’t Find Suitable Replacement Property. Another reason you may consider delaying is if you can’t find ideal replacement property. Remember you only have a limited amount of time to complete your exchange after it starts. If you can’t find suitable replacement property by the 180 day deadline, your exchange might fail.
Every 1031 exchange is different and these guidelines don’t apply to all exchanges. The best thing you can do when considering an exchange is talk to a 1031 intermediary who can advise you on the best course of action.
It’s Never Too Early To Contact a Qualified Intermediary
That said, even if you plan to wait to begin your 1031 exchange, it’s never too early to consult with a qualified intermediary about your exchange. Getting the ball rolling early by talking with a qualified intermediary can help you ensure everything is set up perfectly and that your exchange will be executed as planned.
CPEC1031, LLC
At CPEC1031, LLC we help taxpayers defer capital gains taxes when selling investment real estate under section 1031 of the Internal Revenue Code. Our team of qualified intermediaries has over twenty years of experience in the like-kind exchange industry. Let our professionals help guide you through the many details of your 1031 exchange and ensure you are able to defer 100% of your gains. You can contact us at our primary office in downtown Minneapolis. We facilitate 1031 exchanges of real estate throughout Minnesota and across the 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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