A 1031 exchange allows you to defer your capital gains when selling real estate, as long as you pass your sales proceeds into replacement property. You can continue exchanging property in this manner for years, decades, or even indefinitely. But doing so makes it absolutely essential to keep full and accurate records of all your 1031 exchanges. In this article, we’re going to discuss the importance of keeping accurate records for all of your 1031 exchanges.
Always Be Prepared for an Audit
As a good rule of thumb – always be prepared for an audit. You never know when or if you’ll be audited, but it’s best to prepare yourself accordingly for the possibility. Having full and accurate records of all your 1031 transactions will make things a lot easier in the event of an audit.
In addition, make sure that your records are easily accessible and comprehensible to your heirs and/or executor, in the even that your 1031 properties end up in the hands of your estate.
1031 Exchange in St. Paul, MN
If you are looking to save money when selling real estate – a 1031 exchange allows you to defer your capital gains taxes on your sale as long as you move that money into a continued investment. This has the added benefit of keeping your money compounding and building wealth over time. Talk with one of our qualified intermediaries now to see if you are a good candidate for 1031 exchange. Our intermediaries have been helping investors with their like-kind exchanges for more than twenty years.