One of the biggest benefits of investing in real estate is the tax benefits. One of the most common used tax benefits is the 1031 tax-deferred exchange. Simply, this mechanisms allow investors to defer taxes and build wealth over time. There are many rules to follow and time constraints to be adhered to, making it essential to work with an experienced brokerage firm like Calkain.
Exchanges happen quickly and Calkain works with clients to identify opportunities early to ease the anxiety that can occur once the exchange clock starts ticking. We can help you set the right strategies, find the right investments and ensure a swift, easy transaction with the new property.
The 45 Day Deadline
Replacement properties must be identified within 45 days from the date of sale of your initial property. The identification must be in writing, signed by you, and delivered to a person involved in the exchange. Replacement properties must be clearly described, including legal description, and street address or distinguishable name.
The 180 Day Deadline
A replacement property must be received and the exchange completed no later than 180 days after the sale of the initial property or the due date (with extensions) of the income tax return for the tax year in which the relinquished property was sold, whichever is earlier.