Detailed record-keeping is an essential aspect of any real estate transaction – particularly a 1031 exchange of real estate. In this article, we are going to discuss why it’s important to keep detailed records when doing a 1031 exchange of real property.
Make Things Easy for Yourself & Your Intermediary
There is a lot of paperwork involved in any given 1031 exchange – and a lot of information you need to provide to your qualified intermediary. Make things easy on yourself and your intermediary by keeping accurate records and having the required information readily available.
Protect Yourself in the Event of an Audit
Audits can happen to anyone, and you want to be as prepared as possible in the event that one happens to you. 1031 exchanges are among the most scrutinized elements in any tax audit. Why is that? Because exchanges are widely used and often improperly done. You have to abide by strict rules in order for your property to qualify for 1031 exchange treatment. Keeping full and accurate records of all the properties involved in your 1031 exchange will make it easy for you to prove that you abided by all the rules and that your exchange is legitimate.
1031 Exchanges Done Right
At CPEC1031, we have twenty years of experience working with investors all over the United States on their 1031 real estate exchanges. We guide you through each and every step in the 1031 exchange process – from beginning to end. Our qualified intermediaries will prepare all of your 1031 exchange documentation, advise you throughout the process, and answer all of your questions as they arise. Contact us today to learn more about the benefits of the 1031 exchange and how to get started with your like-kind 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.
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