I hear many people tell me that 1031 Exchanges are too complicated, and my reply is they certainly can be if they’re not planned for properly.
It is true that the exchange process can be daunting as it requires full adherence to a specific list of rules, including strict deadlines which can be complicated, but it doesn’t have to be.
They Can Actually Be Quite Simple
Completing a successful transaction is actually quite simple when it is planned for and entirely mapped out with your CPA, accommodator and a qualified real estate professional who specializes in investment real estate sales and 1031 Exchange transactions.
To be more specific, some of the factors that can make the exchange complicated include the requirement that the property being exchanged must be an investment property, “like-kind” yes, but it could be different such as selling an apartment building and exchanging for a single tenant building, as long as it is investment for investment. The timelines are strict, including the very short 45 days of the identification period.
There are other nuances to the process that can make the exchange transaction complicated such as investing all proceeds from the sale of the disposed property including replacing any debt.
Get the Advice You Need
The best advice is that while an exchange transaction can in fact be complicated, get the help of experienced professionals to lead you to a transaction that can be a valuable tool for you to defer taxes and maximize your investment returns. Therefore, it is highly recommended to consult with a qualified tax professional, attorney and real estate investment broker who has experience in 1031 Exchanges to ensure that all the requirements are met and to minimize the risk of making errors that could result in significant tax consequences.
If you are an investment property owner who is interested in a no obligation, private consultation, please visit www.Best1031Online.com, or contact James Bean of SVN-Rich Investment Real Estate Partners, CA DRE# 01970580, at 805-779-1031 or email at [email protected].
If you are an agent/broker, I am happy to discuss strategies with you on how to best serve your next listing client in preparing them for a successful exchange. Please visit the site and click on the Agent’s button located at the top right-hand corner of the Home Page!
Don’t know what certain terms mean?
Click here for a Glossary of Terms: https://svn-best1031online.com/glossary/
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All information is deemed to be accurate, and not advice. All investors/taxpayers should consult their CPA, tax attorney and investment advisors.