You must follow the IRS Section 1031 Guidelines to complete a successful full tax deferral on the sale of rental property. Corcapa 1031 Advisors can help you with your successful 1031 exchange in 5 steps below:
- Stay in Communication
Be in contact with your Corcapa 1031 Advisor representative ahead of your proposed relinquished property closing so we can begin to research and identify potential replacement property.
- Select a Qualified Intermediary (QI)
You must have a Qualified Intermediary (QI) / Accommodator to receive the sale proceeds from escrow. Corcapa can recommend a QI if you do not have one. When selecting a Qualified Intermediary / Accommodator be sure to research the financial backing before selecting one. Be especially careful to NOT take personal receipt of the funds or your exchange will be invalidated.
- 45 Days to Identify Your Replacement Property or Properties
You will have 45 days from the day you close your relinquished property to identify your replacement property or properties and can use one of three rules: The three property ID rule, the 200% rule, or the 95% rule.
- 135 Days to Close your Replacement Property or Properties
You have an additional 135 days from the end of the 45 day period in which to close on your replacement property or properties.
- Equal or Greater Purchase Price for Full Tax Deferral
Additionally, for full tax deferral you must purchase equal or greater purchase price, equal or greater debt and reinvest all cash.
For more information on 1031 exchange properties and deferring capital gains taxes contact Corcapa 1031 Advisors. Christina Nielson and her team of advisors have more than a decade of experience specializing in 1031 Exchange Replacement Property in the form of Tenants in Common (TIC) / Delaware Statutory Trust (DST) Investments which are appropriate for 1031 tax deferred exchanges.
Contact Corcapa 1031 Advisors (949) 722-1031 or complete the contact form below.