We talk a lot about the importance of preparing well before engaging in a 1031 exchange. We don’t talk as much about what you should do after a 1031 exchange. In this article, we are going to discuss the recommended steps that you should take once your 180 day 1031 exchange period has ended.
Finalize Details with your Intermediary
There will likely be some follow up items that your qualified intermediary will help you handle after the closing of your replacement property. Be sure to get your intermediary any information they request in a timely fashion so this process can go as smoothly as possible.
Connect with Your CPA
Perhaps the most important thing you need to do after the 1031 exchange has ended is communicate with your CPA about reporting the 1031 exchange to the IRS. It’s a good idea to inform your CPA of your intent to engage in a 1031 exchange before you even start the process. After all is said and done, work with your CPA to accurately report the exchange on your annual tax filing.
Compound Your Wealth with a 1031 Exchange
A 1031 exchange allows you to defer your capital gains taxes on the sale of real property and instead move that money into a continuing investment that will allow you to compound your wealth over time. Section 1031 is a very powerful provision that requires the assistance of a professional intermediary. The qualified intermediaries at Commercial Partners have over two decades of experience working in the 1031 exchange industry. Reach out to us today at our downtown Minneapolis office to set up an appointment with one of our qualified intermediaries.