Revisiting the 1031 Exchange Deadlines & Time Limits

1031 exchanges are governed by a list of rules that need to be followed in order to complete a successful exchange. In this article, we are going to discuss the important deadlines and time frames that you need to hit in order to complete a successful 1031 exchange.

180 Days

The most important number to remember for your 1031 exchange is 180. In any 1031 exchange, you have 180 days in total to complete your exchange. That clock starts ticking right after you sell your relinquished property.

There are some exceptions to this rule, but in the majority of exchanges, 180 days is the time frame you have in which to conduct your exchange.

45 Days

The next number to keep in mind is 45. After selling your relinquished property, you have 45 days (the first 45 days of your 180 day exchange period) in which to identify your replacement property in writing.

Exceptions to the Rule

There are a few exceptions to these time rules. For example, if your federal tax filing deadline falls within your 180 day period, your exchange period is shortened to the filing deadline. That is a big potential trap that can sink your exchange. The easiest fix for this is to have your qualified intermediary file for an extension so you can take advantage of your entire 180 days.

Twin Cities 1031 Exchange Company

There are a lot of intricacies that can complicate even the simplest of 1031 exchanges. It’s important to have a qualified intermediary on your team so you make sure that your exchange is executed effectively. At CPEC1031, LLC, our 1031 exchange accommodators have decades of experience helping taxpayers with their 1031 exchanges. If you are interested in deferring the capital gains taxes on the sale of your property, consider a like-kind exchange under section 1031. Contact our Twin Cities qualified intermediaries today to get started with your like-kind exchange of real estate.

• 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

How Long Do You Need to Hold Your 1031 Exchange Investment Property?

There are a variety of rules, regulations, and timelines that you need to follow when exchanging property in a 1031 transaction. One of the most common questions people have when it comes to 1031 exchanges is – “how long do I need to hold my property before I begin my 1031 exchange?” In this article, we are going to discuss how long you need to hold your 1031 exchange property for before conducting a like-kind exchange.

No Concrete Timing Rules

Although there are many timing rules associated with a 1031 exchange (such as the 180 / 45 days time frames), there are no concrete timeframes for how long you need to hold your 1031 exchange property before beginning your exchange. But we can infer some general best practices.

House Flippers Beware!

Exchanging flipped property in a 1031 exchange is a big red flag to the IRS. If it’s obvious that your 1031 exchange property was flipped property, the IRS is likely to deny your 1031 exchange – resulting in immediate taxable gain on the sale.

In general, it’s best to give yourself plenty of time before doing a 1031 on your property. The longer the better – but at least two years is a good starting point.

Defer Your Capital Gains Taxes!

At CPEC1031, our intermediaries have over twenty years of experience facilitating like-kind exchanges of real property for clients throughout Minnesota and across the country. Our intermediaries are well-versed in the exchange process and can prepare all of your documents, answer all of your questions, and advise you every step of the way. Contact our qualified intermediaries today at our downtown Minneapolis office to learn more about 1031 exchanges and how they can help you defer capital gains taxes on the sale of real estate!

• 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

Timing Matters in a 1031 Exchange

Timing is everything in a 1031 exchange. In this article, we’re talking about the various timing issues that can potentially arise before, during, and after a 1031 exchange.

1031 Timelines

1031 exchanges are governed by strict timelines. You’ve got 180 days total to complete your 1031 exchange. The first 45 of those days are set aside as your identification period, in which you need to identify your replacement property.

If you go over these timelines, your exchange will fail and you will recognize your capital gains taxes. There are still options if you find yourself in this situation (DSTs being one option), but it’s best to avoid exceeding these time frames when possible.

Holding Periods

In addition to the 1031 exchange time periods, you also need to be cognizant of your timing after your complete your exchange. After you complete an exchange, you can’t just turn around and sell your new replacement property right away and reap the sales proceeds. The IRS would see this and invalidate your exchange.

As a general guideline, you want to hold onto your new replacement property for at least 2 years after your transaction before selling or exchanging again.

Save Money on Taxes

If you’re looking to save money on taxes when selling real estate, a 1031 exchange may be just the ticket! When you exchange property under section 1031, you can defer your capital gains taxes as long as you move your sales proceeds into a like-kind replacement property. A qualified intermediary can help you through each and every stage of the 1031 exchange process. Contact our intermediaries today to get a better sense of our services and how we can help you save money on taxes when selling real estate!

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Does My 1031 Exchange Period Include Weekends & Holidays?

One of the first things you need to know about a 1031 exchange is that you only have a limited amount of time to complete your 1031 exchange. Specifically, you have 180 days in total from the start to the end of your exchange. In this article, we are going to discuss the 1031 exchange period and whether or not it includes weekends and holidays.

Defining Your Exchange Period

Your exchange period begins when you sell your relinquished property (or when you acquire your replacement property if you are doing a reverse exchange). From that point on you have 180 days to complete your exchange. The first forth-five of those days are set aside as your identification period – the time in which you have to identify in writing all of your replacement properties.

Weekends & Holidays

Weekends and holidays are not excluded from your exchange period. All weekends and holidays count as part of your 180 days. Furthermore, if your 180 day deadline falls on a Saturday, Sunday, or on a holiday, you will not get an extension.

1031 Intermediaries in Minneapolis, MN

The intermediaries at CPEC1031 work with clients in all real estate industries on their 1031 exchanges. With more than twenty years of experience, our intermediaries have the skills needed to facilitate your exchange from start to finish. Contact us at our downtown Minneapolis office today to speak with an intermediary about your like-kind exchange and defer your capital gains taxes on your next real estate sale.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Do I Have Time to Do a 1031 Exchange?

Many taxpayers who want to do a 1031 exchange wonder if they have enough time or if it’s too late. In this article, we will talk a little bit about the various time constraints of a 1031 exchange so you can determine whether or not you have the time to conduct a 1031 exchange.

Calculating Your Timeline

In a typical 1031 exchange you have 180 days total from the start of your exchange to completion. The first 45 of those days are your identification period. There are some rare exceptions to these rules, but for the vast majority of exchanges you need to stick to these timeframes.

Calculate your 1031 exchange deadlines with our online calculator.

Last Minute Deals

Generally, the earlier you begin the 1031 exchange process the better. If you wait until the last minute to set up the exchange, you may not have enough time. If you are even considering a 1031 exchange, contact a qualified intermediary to discuss your options.

1031 Tax Deferral

If you are looking to sell investment real estate, why not avoid a hefty capital gains tax bill by conducting a 1031 exchange of the property? Like-kind exchanges are a legitimate way of deferring your taxes on the sale of real property and making your money work for you in a future investment. At CPEC1031 our qualified intermediaries have two decades of experience working with taxpayers all over the country on their 1031 exchanges of real property. Contact our team today at our downtown Minneapolis office to discuss the details of your exchange and how we can help you save money!

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved