A valid 1031 property exchange is the selling of an investment property with the intention of reinvesting the profits into a new property to defer capital gains taxes. These transactions allow you, the investor, to continue investing in other properties without losing your investment equity to taxes.
These are the four common 1031 Exchange mistakes people make:
- Not having enough in depth analysis of the existing property and tenant.
- Closing the sale on your property without choosing a qualified intermediary.
- Having no plan in place to acquire the replacement property.
- Not being familiar with the 1031 Exchange Time Constraints.
For a free 1031 Exchange guide and for more information, contact Doug Shea, your Tax Deferred Specialist at 562-773-4000 or email email@example.com