With any like-kind exchange, it’s important to assemble your team of financial advisers. That starts with a qualified intermediary who has experience in the industry and your geographical area. Our intermediaries have decades of experience helping investors both large and small with their reverse 1031 exchanges. Contact our North Dakota qualified intermediaries today to get your reverse exchange in the works –877.373.1031.
The Reverse 1031 Exchange – How it Works
A reverse 1031 exchange accomplishes the same goal (tax deferral) as a forward exchange, but the process is reversed. In a typical forward exchange the taxpayer doing the exchange sells their relinquished property FIRST. Then, within the following 180 days, that taxpayer identifies and closes on new replacement property. That order of operations is switched around in a reverse like-kind exchange, with the taxpayer first buying their replacement property, and then selling their relinquished property later.
Why would someone choose to do their exchange like this? Reverse exchanges are particularly useful when the real estate market is hot, and you want to snatch up a property before someone else gets to it. A reverse exchange allows you to purchase an apartment building in Fargo, and then sell your motel in Grand Forks within the next 180 days. When done properly, you’ll defer the capital gains taxes that you normally would have incurred on the sale of your relinquished property and keep those funds compounding and building interest in your new replacement property.
Reverse Exchange Company in Grand Forks, ND
Reverse exchanges can be more complex than typical 1031 exchanges, which means it’s even more important to work with a skilled 1031 intermediary. If possible, contact a qualified intermediary before you even start your exchange so you can ensure that all of your ducks are in a row, and that everything is lined up perfectly for your exchange. Call our reverse 1031 exchange professionals today to talk about your like-kind exchange –877.373.1031.