1031 Exchange Virginia
Benefits Of Having A Strong Team Of Professionals In A 1031 Exchange
A 1031 exchange can be very beneficial: it enables an investor to defer taxes and build on wealth when selling a property. When an investor is purchasing real estate, a 1031 exchange allows them to defer taxes and purchase new investment properties. Despite all these benefits, it can become complicated and stressful if it is not done within the strict guidelines of the IRS.
Hiring a team of professionals in Virginia helps investors plan ahead and facilitate future opportunities for investments. At Calkain, we’re proud to be a qualified team of professionals experienced in 1031 exchanges in Virginia.
Understanding a 1031 Exchange
A 1031 exchange offers a powerful protection for investors. The IRS states that investors are allowed to sell real estate and have the taxes of the sale deferred if they use the proceeds of the sale to invest in a new property. So, by utilizing a 1031 exchange, investors are not only deferring taxes, but also gaining a new property that will facilitate the building of wealth and increased return on investments.
Time Frames for Exchanging Investment Properties
When you are exchanging one investment property for another, there are certain time limits that you must remember when looking for a replacement property.
There is a time frame in which the investor must find a replacement property, or else risk losing the tax benefits of the exchange. An investor who sells a property and wishes to utilize the 1031 exchange has 45 days to find a replacement property after the exact date of the sale of the initial property. The replacement property must be identified in writing and signed by the investor, and given to a person involved in the exchange.
After a replacement property has been identified, the investor has 180 days after the sale of the initial property to receive and complete the exchange with the replacement property. Sometimes the investor has 180 days to receive and complete the exchange after the income tax return of the year’s due date in which the initial property was sold. Whichever date comes earlier is the date that the investor must adhere to when receiving the replacement property in order to be in compliance with the IRS.
Building A Team Of Professionals With Calkain
IRS guidelines are strict and can get complicated, especially in 1031 exchanges. If you are investor seeking the benefits offered by the exchange — versus paying taxes on the sale of the first property and having to refinance for a replacement property — a team of qualified professionals can help you through the entire exchange. Experienced attorneys, accountants, and intermediaries can be very beneficial for the smooth exchange from one property to another. Hiring qualified professionals is necessary for the assembly of a strong exchange team, which can help expedite the process by finding new opportunities for investment. Future strategies for investments and exchanging the property on time will not only rest on the shoulders of an investor, but between the minds of professionals experienced in fast and fruitful exchanges of real estate.
If you have a property that you wish to sell and exchange, then it is important to know that 1031 exchange benefits may be available to you. At Calkain, we’re a team of professionals who help guide our clients through many different types of real estate matters. If you would like more information about pursuing a 1031 exchange Virginia investors benefit from, call or email us today.1031 Exchange Virginia