We get a lot of questions from people considering 1031 exchanges wondering when they should conduct their exchange. In this article, we are going to discuss when during a given year you should consider starting a 1031 exchange of real estate.
1031 Exchanges can be Conducted Year Round
1031 exchanges of real estate can be performed at any time of year. There isn’t necessarily a “best” or “worst” time of year to facilitate an exchange. That being said, there may be a time of year that you works better or worse for your unique situation. With that in mind, it’s a good idea to strategize with an intermediary about when to begin your exchange.
Be Cognizant of Deadlines
While you can do a 1031 exchange at any time, it’s a good idea to plan ahead and structure your exchange around your own schedule. You also want to think about your tax filing – especially if your exchange straddles your filing deadline. Consult with your CPA on this aspect.
It’s also essential to remember your 1031 exchange deadlines. Once you sell your relinquished property, you’ve only got 180 days to identify and close on your replacement property. The first 45 days of your 180 day exchange period are set aside for you to identify your replacement property in writing. Keep these deadlines in mind as you prepare to embark on your 1031 exchange.
Simplifying 1031 Exchanges
1031 exchanges seem simple on the surface, but once you get into the weeds, things can get complicated quickly. That’s why it’s always a good idea to have a qualified intermediary by your side throughout the process. At CPEC1031, LLC, our intermediaries have over twenty years of experience working on exchanges of real estate. We have the skills and experience needed to help facilitate your exchange. Contact us today at our office in downtown Minneapolis to learn more and get your exchange off the ground!
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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