1031 exchanges may seem easy on the surface (and sometimes they are). But there are a lot of potential difficulties along the way. In this article, we are going to discuss the three most difficult aspects of conducting a 1031 exchange of real estate.
Making Sure Your Property Qualifies
Not all property qualifies for 1031 exchange treatment. Personal property is excluded outright. Real estate needs to be held for investment or business use in order to qualify.
Finding Replacement Property
Perhaps the most difficult part of a 1031 exchange is finding replacement property to exchange into. You only have a set time limit to do this so it’s not like you can casually search for the perfect property.
Finishing on Time
Finally, it’s important to finish your exchange within the given time limits. You only have 180 days to complete your exchange once you’ve sold your relinquished property. If you go over this deadline, your exchange will fail. You need to make sure you are prepared to accomplish all your requirements within this timeframe.
1031 Exchange Assistance
If you’re looking for assistance with your 1031 exchange, we can help. CPEC1031 has over twenty years of experience facilitating 1031 exchanges of all shapes and sizes. Our intermediaries can help you fully understand the 1031 exchange process, advise you on replacement property, and prepare all of your documentation for the closing table. Reach out to our professionals today for help with your next like-kind exchange. You can reach us at our primary office in downtown Minneapolis.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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