If you are a real estate investor, the 1031 Exchange is potentially one of the most powerful wealth-building strategies you have at your disposal. The 1031 Exchange is a provision outlined in the Internal Revenue Code (Section 1031), which outlines how real estate investors can defer capital gains taxes on the sale of investment properties by reinvesting the proceeds into another "like-kind" property. HOW TO MAKE SMART REAL ESTATE INVESTMENT DECISIONS WITH A 1031 EXCHANGE
TYPICAL 1031 EXCHANGE TIMELINE STEP 1 STEP 2 STEP 3
Step 1: Sale Date Complete sale of property.
Step 2: Within 45 Days of Sale Date Identify your replacement property.
Step 3: Within 180 Days of Sale Date Complete purchase of replacement property.
Qualified intermediary accepts proceeds of sale.
Qualified intermediary transfers proceeds from sale to seller of replacement.
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