Many taxpayers are eager to start their 1031 exchanges, but don’t know exactly when they can or should begin the like-kind exchange process. In this article, we are going to discuss when you can start the 1031 exchange process in earnest.
How Early Can You Start?
In general, the earlier you begin the 1031 exchange process the better. Preparation is key to a successful 1031 exchange and can help avoid a lot of headaches during the process. Quite honestly, it’s never too early to start thinking about your 1031 exchange. Some people begin their planning years before the exchange actually takes place. That’s because it can take time to line up replacement properties and get relinquished properties ready to sell.
Once you begin the exchange process by selling your relinquished property, then you’re on a very tight schedule. The 1031 exchange process only lasts 180 days (with very few exceptions) from the date you sell your relinquished property. The first 45 of those 180 days are known as your identification period, during which time you need to identify your replacement properties in writing. These deadlines come quickly so it’s always good to prepare as much as possible before beginning the process.
See If You Qualify for a 1031 Exchange
Unlock the power of section 1031 of the Internal Revenue Code by contacting a qualified intermediary to see if your property qualifies for 1031 exchange treatment. CPEC1031, LLC has skilled intermediaries standing by to answer any questions you have about the 1031 exchange process. We can guide you through every stage of your like-kind exchange and ensure you are fully prepared for anything that may arise during your exchange period. Reach out to our team today at our downtown Minneapolis office and learn more about how we can help you defer taxes.
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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