Confirm the objective
Identify why the investor is exchanging and what the replacement property should accomplish.
1031 Exchanges
Plan the exchange before the relinquished property closes.
A potential Section 1031 exchange requires early coordination among the investor, qualified intermediary and appropriate tax and legal advisors.
What to know
Prepare for the transaction timeline.
Engage qualified professionals
The qualified intermediary and tax advisor should be involved before the sale closes or proceeds are received.
Understand the deadlines
Identification and completion deadlines are strict and should be confirmed for the specific transaction.
Define replacement criteria
Property type, geography, income, debt, management needs and risk should guide the replacement search.
Coordinate both transactions
Contract timing, inspections, financing and closing readiness must be managed across the sale and acquisition.
Maintain alternatives
More than one viable replacement option can reduce the risk of relying on a single property.
A helpful reminder
Brittny McKay Real Estate does not provide tax or legal advice. A qualified intermediary and appropriate professional advisors must determine whether a transaction qualifies.
Your next move
Planning to sell an investment property?
Begin the real estate planning early so the marketing and replacement-property strategy can support the exchange timeline.
Discuss an Exchange