If you’re thinking of doing a 1031 exchange, you have several types of exchanges to consider – forward exchanges, build-to-suit exchanges, and reverse exchanges. Determining which type of exchange is right for you can be difficult. In this article, we are going to talk about when a reverse 1031 exchange may be your best option when selling investment real estate.
When the Real Estate Market is Competitive
Perhaps the best time to conduct a reverse 1031 exchange is when the real estate market is hot. One trap that trips up many taxpayers conducting 1031 exchanges is the 180 day time period. Once you begin your exchange, you have just 180 days to finish the process. If you can’t find a replacement property within that timeframe, your exchange is in danger of failing. This can be a particular concern when the real estate market is competitive and properties are being snatched up quickly.
With a reverse exchange you can lock down your replacement property before you sell your relinquished property. This allows you to secure a replacement property that you like before someone else is able to get it first.
1031 Exchange Professionals Located in Minneapolis, MN
If you’re looking for help with your 1031 exchange of real estate, you’ve come to the right place! CPEC1031, LLC is a full service like-kind exchange company providing qualified intermediary services to clients throughout the United States. We have more than two decades of experience working on 1031 exchanges of all kinds. We can help you through the many details of your next 1031 exchange and make sure you are able to defer 100% of your capital gains tax burden. Reach out to us today to learn more about our 1031 exchange services and see how we can help!
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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