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SIX WAYS TO ENSURE YOUR 1031 EXCHANGE IS
WSUCCESSFULLY COMPLETED
hether you are an investor or a real Step 1: Know the applicable deadlines. The estate broker, selling investment Internal Revenue Service (IRS) requires an investor or business real estate can be to identify a replacement property within 45 days, an expensive venture unless you and to close on the target property within 180 days are prepared to conduct a 1031 of selling the relinquished property. That doesn’t exchange. Section 1031 of the leave much time to hunt for the right deal, but it’s
Federal tax code provides that no gain or loss shall enough time. Working with an expert 1031 exchange be recognized upon the sale of a real estate property investment firm like Kay Properties can help investors held for business or investment purposes, as long as successfully complete their 1031 exchange within
the seller purchases a replacement property of equal or greater value. This can be a solid opportunity, potentially, to preserve the gain and accrue additional wealth. However, the 1031 exchange can be a tricky process that has frustrated many amateur and professional real estate investors alike.
So, to help potentially avoid having your 1031 exchange blow up in your face, here are six steps to consider as you advise a client on undertaking and entering into a 1031 exchange:
these timelines.
Step 2: Get educated about acceptable types of replacement properties. The IRS requires an exchanger to reinvest in a “like kind” property. However, “like kind” does not necessarily mean the same type of property. There are a variety of options available. For example, if you are selling a duplex in San Diego, that doesn’t mean you need to replace it with another duplex. The 1031 exchange allows investors to replace relinquished real estate with a
ABOUT KAY PROPERTIES & INVESTMENTS, LLC
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay’s clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031 investments. For a look at the types of DST properties investors are using for estate planning purposes please visit the Kay Properties marketplace at www.kpi1031.com. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security.
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