Understanding The Need To Know 1031 Exchange
Experienced real estate investors who are in the game are aware of the fact that the 1031 exchange is a strategy that helps them to grow their portfolios and increase their net worth faster. 1031-like-kind exchange real estate allows you to defer capital when selling a property, and the final proceeds are used towards a similar investment within a specific time frame. The Working Of 1031 Exchange Work Identifying The Property You Want To Buy The property you are selling and the property you’re buying must be kind, meaning they must be similar but not the same. Choosing A Qualified Intermediary This is an essential step in the exchange qualified intermediary on a 1031 exchange. This qualified intermediary tends to hold your funds until the exchange is complete. Hence, choose the right qualified intermediary, so you don’t lose money, end up paying taxes, or miss critical deadlines. Informing The IRS About Transaction This is the third step in it. You need to tell the IRS about your tran...