3 Relevant Tips From 1031 Exchange Advisors That Certainly Help

3 Relevant Tips From 1031 Exchange Advisors That Certainly Help If

you

already

own

an

investment

property and are looking to sell it, you might want to consider a 1031 exchange.

Real estate investors have turned to 1031 exchanges to defer capital gain taxes on the sale of investment properties.

It is considered a wealth-building tool that can help you sell one investment property and purchase another while deferring taxes.

By exchanging one asset for another with the help of 1031 advisors in Utah, real estate property investors can trade up for significant scale assets or reposition their investment capital into different markets.

1031 advisors can help both novice and seasoned investors successfully complete 1031 exchanges.

However, 1031 exchanges can be complex.

Therefore, this post comprises some tips from 1031 advisors that can help ensure a smooth and successful exchange:

Marketability Of Your Replacement Property This factor can sometimes be challenging to think about when you're already under tight deadlines to close on a new property. However, it's important to think two steps ahead in such scenarios as it's essential to consider your replacement property's

current

and

future

marketability. As a buyer, you won't like buying a replacement property that isn't marketable to prospective tenants and real

estate

investors.

Hence,

consideration of the marketability of your replacement property is a vital factor.

Stay Up-To-Date On Rule Changes Keep in mind that 1031 exchanges require you to move relatively quickly. You only get 45 days to identify a replacement property when you sell your investment property. You also have a period of 180 days from the original sell date to close on

the

replacement

property.

Additionally, it's also vital to be well known about the latest tax code changes as

they

exchanges.

significantly

impact

1031

Signing The Documents Before Closing We know that the 1031 exchange allows you to sell your relinquished property and acquire your replacement property at a later date. In order to make a purchase followed

by

an

exchange,

you

are

required to sign a document either on or before

the

closing

date

of

your

relinquished property. You'll also be required to sign a document outlining an assignment of your rights under the contract and give the seller notice of the assignment.

Consider Experts In Your 1031 Exchange Process 1031 exchange process comprises many parts. Therefore, to ensure a smooth transaction, you'll want to surround yourself with experts who can provide the necessary guidance to help you get to every step of the exchange. The best step is to consider a 1031 advisor that will help you hold the sale proceeds and assist you with the paperwork needed to ensure a successful transaction.