Utilizing the 1031 exchange allows for the reinvestment of all proceeds from the sale of a property and defers paying capital gains taxes. This allows 100% of the capital to continue working for the seller.
This is a very breif overview of how the 1031 exchange process works and what to expect from me.
-After deciding to sell and exchange the property I will refer the seller to an exchange accomadator if the seller does not have one already.
- I will work closely with the exchange accomadator, on the seller's behalf, to help satisfy the requirements of the exchange.
- Property must be like kind, 100% of proceeds must be reinvested, and the ownership entity must be identical to the property being sold.
- Within 45 days of the original property's close date, the seller must identify up to 3 properties to exchange into. After the seller identifies the properties I will then write up offers. From there the seller has 135 days to close on one of the identified properties. From the close of the old property to the close of the new property is 180 days total.
- I will be working directly with the exchange accomadator and the seller to ensure a smooth and stress free process.
- After close I provide any guidance and assistance the client may require.