exchange1031 help

Jeffrey is planning to sell an investment property and wants to purchase a new investment property. He would like to defer the capital gain through a 1031 exchange, but he also needs to keep some of the cash from the sale with himself. He wishes that he could do both. So we can help him out in getting out of this situation. There is a misconception in the mind of the investor that he cannot keep any proceeds from the sale of the relinquished property if he wants to complete the 1031 exchange. This is right if he is going to defer 100% taxes owed after the sale, but, if he is going to keep some portion with him, then he can pay for the preserved part. An investor who needs the cash now, to pay the medical bills, or might be for a vacation that is long past due. Whatever the case, rather than refinancing, taking out a new loan or withdraw the cash from a 410K or find the money from anywhere else, the investor finds it more profitable to sell the property to obtain the needed f

1. Appoint a QI before selling your property Every step of a 1031 Exchange transaction, whether it's selling the relinquished property or the identification and purchase of the replacement property, needs to be performed with the help of a Qualified Intermediary (“QI”). A QI is essential for a profitable 1031 Exchange transaction. QI helps you to smoothly complete the otherwise complicated 1031 real estate exchange process, ensuring that all the IRS guidelines are correctly followed. A QI needs to be an independent entity bound by a written agreement with the investor to perform the exchange transaction. 2. Begin early After completing more than 150K+ successful 1031 Exchange transactions, the first advice we give to our clients is - "Start searching for replacement properties before you close. The 45-day identification period gets over instantly." 3. 1031 Exchange Time Period Guidelines IRS has issued precise identification period guidelines for a succes