4 Steps Involved in Looking for Like-Kind Properties for 1031 Exchange

4 Steps Involved in Looking for Like-Kind Properties for 1031 Exchange If you are familiar with the real estate trends, you would know about the 1031 exchange. It is a section of the IRS that states that if you are exchanging a like-kind property, you may be able to defer capital gains tax. Now, while this may seem lucrative, you need to adhere to various conditions and follow the standard procedures to be eligible for a 1031 exchange. To do that, you need to gather information about the way you should look for 1031 exchange properties in Salt Lake City.

Here are some of the steps you should follow when you wish to look for like-kind properties to complete the 1031 exchange: 1. Do your due diligence One of the first steps you should follow is to do your due diligence. You need to gather information about the 1031 exchange and know the protocols and conditions you need to adhere to before moving ahead. Also, you should know the procedure you need to follow and, more importantly, the professionals you interact with before you move ahead. When you have focused on all these methods, you do not have to worry about anything else.

2. Focus on the features of the property When you are familiar with the initial aspects of the 1031 exchange, you need to focus on the property you wish to exchange. You need to seek the assistance of a Realtor to know its market value, size, and other features before you can look for like-kind property. When you begin your search for the property, you will realize that you need a third party or a qualified intermediary to help you facilitate and, more importantly, complete the 1031 exchange.

3. Hire a qualified intermediary At this stage, you have a fairly clear understanding of how the 1031 exchange process works. You bring in a qualified intermediary and seek their services to fulfill the requirements and complete the exchange. Even though they will help you work through this closely, you need to ensure that you know the eligibility for the exchange before moving ahead. You need to focus on their credentials, experience, services offered, and other locations before you make an informed decision.

4. Shortlist more than two “like-kind” properties When you are through with all the steps, you can work towards shortlisting more than two “like-kind” properties.

Even when you need to look for a single like-kind property for the exchange, it’s always better to keep an option ready to avoid any hassles. When you know what you are in for, you do not have to worry about anything else.

Once you are through with all the steps, you can follow the procedure, complete the documentation, and achieve the intended results.

If you wish to look for 1031 exchange properties in Salt Lake City, you should visit the websites of the concerned agencies.

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