1031 exchanges are a great way for taxpayers to defer their capital gains taxes on the sale of real property. Contact our Michigan 1031 exchange professionals today for help with your next like-kind exchange of real estate – 877.373.1031.
What is a Forward 1031 Exchange?
A forward exchange is the most common and simple type of 1031 exchange available to US taxpayers. In a forward exchange, you sell your relinquished property first. Then, you identify and acquire your replacement property over the following 180 days. When done correctly, you can defer 100% of your capital gains taxes and keep your money working for you in a continued investment.
1031 Exchange Rules & Requirements
1031 exchanges may sound simple on paper, but there are a lot of rules and regulations you need to abide by in order to complete a successful exchange. Here are a few of the most common rules that need to be met:
- Like-Kind and Qualifying Purpose. All property involved in a 1031 exchange must be like-kind and held for a qualifying purpose (investment or business use).
- 180 Days. Once you begin a 1031 exchange you only have 180 days to finish it.
- Debt, Equity, Value. You need to go up in debt, equity, and value with your replacement property.
Michigan 1031 Exchange Company
1031 exchanges can get complicated quickly. That’s why it’s always a good idea to work with a qualified intermediary who understands the process inside and out. Give our Michigan qualified intermediaries a call today to learn more about the like-kind exchange process or to set up your next 1031 exchange. Our intermediaries have over twenty years of experience facilitating exchanges of all shapes and sizes in the state of Michigan and across the United States. We can help you through all the details of your exchange, prepare your 1031 documents, and advise you every step of the way – 877.373.1031.