Many taxpayers are familiar with 1031 exchanges, but don’t know how to start an exchange. In this article, we are going to talk about how to start a 1031 exchange in the state of Michigan. If you have any questions on the 1031 exchange process, don’t hesitate to reach out to our Michigan qualified intermediaries!
Getting Your 1031 Exchange Off the Ground
Technically, a 1031 exchange begins with the sale of your relinquished property (or the sale of your replacement property in a reverse exchange). However, it’s not a good idea to jump into the 1031 exchange waters head first. You want to do a little bit of prep work first.
The first thing you should do is consult with a qualified intermediary. A 1031 intermediary is someone who understands section 1031 of the Internal Revenue Code back to front. They will be able to advise you on the specifics of your exchange. It’s important to involve an intermediary before you sell your relinquished property. Having a little extra time will allow you to prepare all of the necessary 1031 exchange documents, and do a little bit of scouting for replacement property. The more prep time you can give yourself and your intermediary, the less chance that you’ll be scrambling at the last minute
Michigan Like-Kind Exchanges
Get your Michigan like-kind exchange started today by contacting CPEC1031, LLC. Our team of qualified intermediaries has over twenty years of experience facilitating like-kind exchanges of all shapes and sizes. We can help you through every step of your exchange by answering your questions, advising you, and preparing all of your 1031 documentation. Reach out to our 1031 exchange professionals today to learn more about the process and how we can help!
