When it comes to 1031 exchanges, there is a lot to keep track of. Many exchanges can get complicated very quickly, but there are some essential things that apply to all exchanges. In this article, we are going to cover some basic things to know about 1031 exchanges of real estate.
All Property Needs to Be Like-Kind
The first thing you need to know about 1031 exchanges is that all property involved needs to be like-kind in nature. That means your relinquished property and your replacement property both need to be like-kind. When it comes to real estate, most property is like-kind to most other property.
You Have to Meet Certain Deadlines
You also have to meet some pretty strict deadlines to complete a successful exchange. You have 180 days in total to finish your exchange once you sell your relinquished property and initiate the process. The first 45 days of that period are reserved for identification of your replacement property.
Personal Property is No Longer Allowed
The last tax overhaul passed by Congress excluded personal property from section 1031. That means real estate is the only type of property allowed.
1031 Exchange Company in Minneapolis, MN
Commercial Partners has been providing like-kind exchange services to clients throughout the state of Minnesota and across the country for more than two decades. Our qualified intermediaries have the skills and experience needed to guide you through every step of your exchange – answering any questions, preparing the necessary documents, and advising you. Give us a call today to speak with one of our qualified intermediaries about your like-kind exchange of real property.