Outdated Investment Property? Consider a 1031 Exchange!
Anytime is a great time to consider doing a 1031 exchange, they are not as complex as many think, you just need the right connections to complete the process. A 1031 exchange allows you to update an old investment property to a newer investment property tax free which in turn can also produce a better gain on your investment.
One of the biggest myths with a 1031 exchange is that the property has to be exchanged for the exact type of a property. That is not true. You can exchange a single family rental unit for a farm or visa versa. You can exchange an apartment complex for multiple single family rental units and visa versa. Or you can exchange several investments into one large commercial property. They simply need to be income producing investments to exchange.
The biggest mistake made in a 1031 exchange is not being prepared ahead of time to make the exchange. These exchanges come with a short time frame to sale and repurchase a like-kind property and those time frames can be easily managed if you prepare ahead of time. Making a last minute decision to make an exchange can cost you in capital gains taxes. But reaching out for help before you start the process can make the transition seamless. Our company works with some of the best 1031 exchange specialist in the industry and we would be happy to guide you through the process. Call today to get your step by step guide to doing a 1031 exchange.
If you have already began a 1031 exchange you will be happy to note that the IRS has offered a deadline extension for 1031 like-kind exchanges. If you have already taken the first step in a 1031 exchange by selling the old property and your 45-day or your 180-day deadline fell between April 1 and July 15, then the deadline has now been extended to July 15, 2020.