Our Approach to 1031s
The biggest benefits of investing in real estate are the tax benefits. One of the most utilized mechanisms to carry out business tax strategies is the 1031 tax-deferred exchange. Simply, a 1031 exchange allows investors to defer taxes and build wealth over time, by deferring the tax you’d pay in a conventional sale and reinvesting it into a new property of equal or greater value.
1031 exchanges must adhere to strict IRS guidelines and can be quite complicated, requiring qualified intermediaries, attorneys and accountants. It becomes essential to assemble the right team of experienced professionals. Calkain works with clients to establish solid exchange teams. Exchanges happen quickly, and we can assist you in finding opportunities early to ease the anxiety that can occur once the exchange clock starts ticking. From the onset, our team will help you set the right strategies, identify the right investments and execute a swift, easy transaction with the new property(ies).
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.