Navigating the waters of a 1031 exchange can sometimes be a rather intimidating process. There are strict guidelines that must be followed, and time is certainly of the essence. And it seems that almost everyone has heard about what you can and can’t do with a 1031 exchange. Unfortunately, much of what they have heard is often misinformation.
Below are five of the top myths I have recently heard regarding what is allowed with a 1031 exchange:
Yikes! Following the wrong advice can really get us in trouble. Any of the above statements could result property acquisition mis-steps, potential tax liability of some or all of the proceeds, and potential penalties from the IRS.
The diagram below was prepared to provide a visual representation of a successful 1031 exchange. There are myriad complexities and nuances that must be considered. We would be happy to help you navigate those waters. Our team of experts includes 1031 qualified intermediaries, attorneys, tax advisors, and real estate professionals.
It is our honor to be the company of choice for so many investors. We would welcome a call to discuss your particular commercial real estate investment needs. Please call us at (817) 200-7620 to set up a consultation.
With Gratitude and Respect,
Ken Wimberly, CCIM