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8 Tips for a Successful 1031 Exchange

Real Estate Agent with Amerivest Realty SL3386063

💡 A 1031 exchange allows you to defer taxes on investment property sales by reinvesting the profits into another investment property. The exchange must involve like-kind properties, be completed within 180 days, and have potential replacement properties identified within 45 days.

1️⃣ A 1031 exchange can defer capital gains taxes on the sale of an investment property if the proceeds are reinvested in another like-kind investment.

2️⃣ The property sold and the replacement property must be held for business or investment purposes to qualify for a 1031 exchange.

3️⃣ The sold and replacement property must be like-kind, but it doesn't have to be the same type of property.

4️⃣ Flips, properties held for immediate resale, are generally not recommended for a 1031 exchange unless they are rented out or held for at least a year and a day.

5️⃣ Vacation properties can qualify for a 1031 exchange if certain requirements are met concerning ownership and use.

6️⃣ The exchange must be completed within 180 days, starting from the day you sell your investment property.

7️⃣ You must identify potential replacement properties within 45 days of selling your investment property.

8️⃣ It's important to work with a qualified intermediary who can guide you through the process and ensure that all the rules are followed.

For more detailed insights, be sure to click through to our Full Article. There, you'll find in-depth information and step-by-step guidance to help you make the most of your 1031 exchange. Don't miss out - read now!