In 1984 and 1991, Congress gave the Internal Revenue Service and United States Treasury the authority to write their own regulations regarding 1031 exchanges. In doing so, they implemented the guardrails that keep section 1031 on track, including:
The 45-day identification requirement. This states that you must designate your replacement property within 45 days after the date of the sale of your relinquished property. You have to clearly and unambiguously describe your property.
The 180-day exchange requirement. This states that you must receive the replacement property by the 180th day after your exchange begins.
These have become the basic building blocks of 1031 exchanges. No matter what kind of exchange you are conducting (forward, reverse, build-to-suit, etc.) you still need to abide by these guardrails in order to defer 100% of your capital gains tax burden.
1031 Exchange Services in Minnesota
CPEC1031, LLC is a 1031 exchange service company helping taxpayers defer their capital gains taxes on the sale of qualifying real property. For over twenty years, our intermediaries have been facilitating exchanges of all shapes and sizes for customers throughout the United States. No matter where your property is located, or how complex your transaction might seem – we’ve got the necessary skills and resources to help. To learn more about the tax-saving benefits of section 1031 of the Internal Revenue Code, contact us today to set up a time to chat.
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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