Timing is a huge factor in any 1031 exchange of real estate. Many people want to know how long they can wait to start their exchange. In this article, we are going to answer the question: “when is it too late to begin a 1031 exchange?”
Timing Restrictions
Once a real estate transaction has been closed, it’s not possible to do a 1031 exchange. That’s the biggest thing to remember when considering whether or not you want to do a 1031 exchange. You need to begin the process in advance of the closing because you need to get everything set up and designate that the property will be used in a 1031 exchange transaction. Sometimes we get calls from folks who are just about to close on their properties and they want to do a 1031 exchange. It is possible to delay the closing and set up an exchange in these situations but it’s really not ideal.
Start the Process Early
The best thing you can do to set your exchange up for success is start the process early. Give your qualified intermediary the time needed to prepare the required documentation and get everything ready before closing.
Begin the 1031 Exchange Process
Section 1031 of the Internal Revenue Code exists to incentivize US taxpayers to continue their investments in real property. If you are considering a sale of investment real estate and want to defer your capital gains taxes on that sale – you could benefit from a 1031 exchange. Work with the skilled and experienced qualified intermediaries at CPEC1031, LLC to ensure you have all of the details covered throughout your like-kind exchange. We work with taxpayers on exchanges throughout the United States.
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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