Many taxpayers have heard of 1031 exchanges before but may not know how to start one. In this article, we are going to talk about how to initiate the 1031 exchange process in North Dakota.
Starting the 1031 Exchange Clock
Technically, your 1031 exchange begins when you sell your relinquished property. Once you do that, your 1031 exchange “clock” starts ticking. You then have 180 days total to complete your like-kind exchange, with the first 45 days set aside for you to identify in writing your replacement property. These are very strict deadlines set by the IRS. While there are rare instances in which they can be extended, in most cases you need to hit these deadlines in order for your exchange to be a success.
Get a Head Start
Just because your exchange doesn’t technically begin until you sell your relinquished property doesn’t mean that you should wait until that point to begin preparing for your exchange. The more lead time you can give yourself and your qualified intermediary, the better. 180 days may seem like a long time, but it can go quickly. Consulting with a qualified intermediary before you begin the process can position you for success once you sell your relinquished property.
Get Help with your 1031 Exchange
Commercial Partners Exchange Company handles all things related to 1031 exchanges. If you are thinking about engaging in a 1031 exchange, we can help facilitate the process and make things as easy as possible for you. With twenty years of experience, we have the knowledge and expertise needed to help you. Reach out to our 1031 exchange professionals today to get the help you need with your 1031 exchange and start saving money in capital gains taxes with your next real estate transaction. We have offices located across the United States.