1031 exchanges can be confusing to those unfamiliar with the process. Here, we’re going to answer some frequently asked questions about the 1031 exchange process in North Dakota.
What Property Can Be Exchanged?
Only real estate qualifies for 1031 exchange treatment. Items of personal property cannot be exchanged. Furthermore, all property needs to be held for investment or use in your trade or business. That means you can’t exchange your house that you use as a primary residence.
How Long Do I Have to Complete My Exchange?
1031 exchanges are governed by strict time limits. The big number you need to remember is 180 days. You only have 180 days total to complete your 1031 exchange. The next number you need to remember is 45. The first 45 days of your exchange period are your replacement property identification period. It’s important to hit these deadlines to ensure the success of your exchange.
How Do I Defer 100% of My Capital Gains Taxes?
In order to defer all of your capital gains taxes, you also need to be cognizant of your debt, value, and equity. Specifically, you need to ensure that your replacement property is equal to or greater than your relinquished property in these three categories.
Contact a Qualified Intermediary Now
Interested in learning more about the 1031 exchange process? Want to set up your own 1031 exchange? Contact our qualified intermediaries today to get started! At Commercial Partners Exchange Company, we specialize in facilitating like-kind exchanges under section 1031 of the Internal Revenue Code. We have over two decades of experience in the 1031 exchange industry and can put our knowledge to work on your 1031 exchange. Contact us today to initiate the process. You can find us at one of our satellite offices around the country.
