3 Tips to Follow When Looking For a 1031 Exchange Property

If you are planning to sell or purchase a property, chances are that you would be exploring the 1031 exchange option. But, why? Well, in simple terms, it’s because it helps you to defer taxes. Even though this may seem a lucrative option at first, you need to be careful. The 1031 exchange process is complicated and you need to adhere to a lot of guidelines and restrictions to be eligible for the 1031 exchange. To avoid any hassles, you should keep a few things in mind as suggested by the 1031 exchange experts.


Here are some of the tips you should follow when you wish to look for 1031 exchange property:

# 1 Look for multiple properties

One of the first things you should do when you wish to be a part of the 1031 exchange is to look for multiple properties. Do you know why? Well, it’s because it helps you keep your options open. Since it is not always possible to lock in the deal for the first “like-kind” property you come across, you need to have a back-up plan. According to the Internal Revenue Service or the IRS, you have the option to shortlisting up to 3 properties in advance when you are preparing for a 1031 exchange.


# 2 Choose the properties of equal or higher value

A lot of individuals do not know that when you are a part of a 1031 exchange, you have to be careful with the value of the property you select. For instance, if you wish to avoid capital gains taxes, you should preferably look for properties that are of an equal or higher value than the one you are selling. This is because it is not, you might end up paying capital gains taxes which you had not at all planned for.


# 3 Hire a qualified intermediary

After knowing the basics of the exchange, most of us would agree that it’s really difficult to manage all of this on your own. Precisely because of this reason, you should hire a 1031 exchange expert. As they have experience in handling, identifying, and looking at other properties, they can ease out the process. When you have an expert to assist you in the entire process, you would not have to worry about making any mistake that can prove to be costly later. To avoid that, you should contact them today.


If you wish to hire a 1031 exchange advisor in Utah, you should visit the websites of the concerned professionals.

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