“If only I’d have…”
Don’t you just hate having to say this phrase when you make mistakes? Whether it’s about a small property problem or a huge financial bump, anything that affects your financial stability is a huge hassle. 1031 Exchange, for one, can create a great impact on your financial stability in case you’re unaware about how it works. Any wrong decision regarding a 1031 exchange might put you at risk, costing you more in the future.
But you don’t deserve that bad result. We at 1031Exchange Place have seen different exchange mistakes and here are some of them. Read on. It’s for your own good.
“Like-Kind” means you have to exchange your property to the same type of property
The term “Like-Kind” doesn’t mean you’re going to exchange your 2-storey apartment for another 2-storey apartment. This term, in effect, means that as long as you’re selling a real property somewhere in your state, then buying or exchanging into any other real property located in another state or country is okay. Keep in mind that the term “like-kind” is just for exchanging real property for other real property, not real property for a personal property.
Rushing to buy properties
Many investors don’t even know their main reason for selling that property and how they are going to acquire a new one. Sometimes, they sell a property because they think it’s a good time, but they haven’t thought about looking for a quality replacement. Don’t rush into selling that property if you’re still uncertain about the results. Take time to weigh all the factors to come up with a nice decision.
Working with weak Qualified Intermediaries
A good Qualified Intermediary should guide you every step of the way. They should work with you and your legal advisors to make sure every process is correct. That is why working with reliable Qualified Intermediaries is a must to ensure your documentation meets the standards of the IRS.
We’ll guide you throughout the process. Whether you want to facilitate exchanges or safeguard your investments based on the IRS rules, we can provide you with a compliant and safe 1031 exchange. Call us now for more information.