Many people who are considering 1031 exchanges wonder when they should start their exchange. In this article, we are going to talk about when during a given year you should consider doing a 1031 exchange of real estate.
1031 Exchanges are Year Round
One of the best things about 1031 exchanges of real estate is that they can be performed at any time of year. There isn’t necessarily a “best” or “worst” time of year to facilitate an exchange. However, there may be a time of year that you works better or worse for your specific situation. With that in mind, it’s a good idea to strategize with an intermediary about when to begin your exchange.
Plan Ahead & Be Aware of Deadlines
While you can do a 1031 exchange at any time throughout the year, it’s a good idea to plan ahead and structure your exchange around your own personal schedule. You also want to think about your tax filing – especially if your exchange straddles your filing deadline.
It’s also essential to remember your 1031 exchange deadlines. Once you sell your relinquished property, you’ve only got 180 days to identify and close on your replacement property. The first 45 days of your 180 day exchange period are set aside for you to identify your replacement property in writing. Keep these deadlines in mind as you prepare to embark on your 1031 exchange.
Simplifying 1031 Exchanges
1031 exchanges seem simple on the surface, but once you get into the weeds, things can get complicated quickly. That’s why it’s always a good idea to have a qualified intermediary by your side throughout the process. At Commercial Partners Exchange Company, our intermediaries have over twenty years of experience working on exchanges of real estate. We have the skills and experience needed to help facilitate your exchange. Contact us today at our office in downtown Minneapolis to learn more and get your exchange off the ground!