Many taxpayers who have heard of the 1031 exchange are unsure of where to begin or how to start an exchange. As a result, those taxpayers miss out on the money-saving tax-deferral benefits of a 1031 exchange and end up taking a big tax hit on the sale of their property. In order to avoid this, we’re going to explain how to start a 1031 exchange in Duluth, MN. If you have additional questions, or would like help setting up your exchange, contact our Duluth 1031 intermediaries today – 218.831.1031.
First Steps in the 1031 Process
Starting your 1031 exchange typically begins with the sales of your relinquished property. After you close on that property you have the following forty-five days to identify in writing your new replacement properties. You have 180 days total to purchase those properties and complete your exchange. Sounds pretty simple right? Well, there are a lot of rules, regulations, and requirements that you have to abide by during the process or else the IRS will not recognize your exchange and you will take that tax hit that you’ve been trying to avoid. For example, your exchange has to be for like-kind properties, and the value/debt of your new property needs to be greater than or equal to that of your relinquished property.
For all of these reasons, most savvy taxpayers hire a qualified intermediary before starting their exchange. A skilled intermediary takes care of everything to facilitate your 1031 exchange from document preparation to holding your exchange funds in a separate, segregated account until your exchange is complete. Having a Duluth qualified intermediary at your side can be the difference between a successful and a failed 1031 exchange.
Duluth 1031 Exchange Services
Our Duluth 1031 exchange pros are standing by and ready to walk you through every step of your exchange. Whether your exchanging real estate or personal property, we are here to help. Give our Duluth qualified intermediaries a call today to start your exchange and realize the tax-saving benefits of section 1031 – 218.831.1031.