first time consideration for the 1031 exchange process f
Good evening, can someone walk through the process for a 1031 exchange and willing to walk me though my first one.
Originally posted by @Deidre M Lewis:Good evening, can someone walk through the process for a 1031 exchange and willing to walk me though my first one.
Hi Deidre, I wrote a blog about some important considerations. Completing a 1031 Exchange allows you to defer that tax and depreciation liability and invest in another rental property.
To have a successful 100% tax deferred exchange there are a number of requirements the taxpayer must follow. The seller must trade equal or up in value, invest all equity from the sale and replace the debt, follow specific deadlines, enlist the help of a Qualified Intermediary to provide advice, prepare 1031 Exchange documents, and also hold the funds from the sale. Those are just a few requirements, there are others that are just as important.
- Archer Investors
- 650-430-4333
- http://www.ArcherInvestors.com
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Deidre M Lewis, Your actions as the investor doing the 1031 are going to be exactly what you would normally do to sell and purchase investment real estate. And you'll use all of the same professionals you normally use with the addition of a qualified intermediary whose only role is the 1031 exchange.
The 1031 starts with the sale of your old property (and the QI must be in place prior to the closing of that sale). And it ends with the purchase of your new property with some timelines and regulatory hoops to jump through in the middle.
But done correctly the 1031 should be a seamless almost invisible process for you with the QI as your guide.
I'll reach out via pm to put some more resources in your hands.
Awesome
How do you find a qi?
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Deidre M Lewis, There are several QI's like us here on BP. A google search will also reveal a half dozen paid ads for the largest firms. Referrals from your friends and co-investors (like the profile reviews here at BP) can be a great source. And the title company you use may have a relationship with a QI firm like ours that they use frequently.
There is no geographic restrictions. You just want a firm that has demonstrated experience over the years and that is accessible to truly be your guide and not just a document processor.