1031 Exchange – Factors To Know
Savvy and experienced real estate investors are well aware that a 1031 exchange is a common tax strategy that helps them grow their portfolio and increase net worth faster and more efficiently. However, some real estate investors also think that when they do an exchange, they can’t touch the money and must identify what they are going to buy within 45 days. While these facts may be actual, some things to understand ahead of time while deferring capital gain tax to make the process smooth and successful. Signing Exchange Documents Before Closing We all know that 1031 exchange rules allow you to sell your property to someone and acquire your replacement property later from a different person. Hence, by signing off-exchange documents and following other rules, you can be on the beneficial side. It’s also essential to sign exchange documents on or before the date that you close on the sale of your property. Consider The Matter Of Expenses Some expenses can be paid with exchange proceeds t