The Most Common 1031 Exchange Mistakes Investors Make
Steer clear of these errors to effectively complete a 1031 Exchange, leverage its benefits, and maintain consistent filing with the IRS.
The prevalent mistake made by real estate investors when utilizing a 1031 Exchange is attempting to navigate the process independently. In this context, we will explain:
• Why undertaking a 1031 Exchange without professional assistance may not be cost-effective.
• The optimal timing for submitting your 1031 Exchange.
The Mistake: Never Submitting the Exchange Intake
Many real estate investors don't use a 1031 Exchange because they find the process too complicated. To make things easier, Elevated 1031 Exchange created the Elevated Exchange Portal. This tool automates all the steps involved in documentation, submission, and communication with the parties involved, following the specific timeline of each exchange.
The Solution: Identify and Submit Earlier vs. Later
To get ready for filing an exchange, it's crucial to identify potential relinquished/acquired properties as early as possible. Once you've identified these properties, you're restricted to relinquishing and acquiring from that specific list. It's not advisable to change the identified properties mid-exchange. Once a property sale closes and the exchange has been submitted, altering the identified properties is not feasible. A successful 1031 strategy involves early and intentional identification of properties. For assistance in developing your 1031 Exchange strategy, schedule a consultation with one of our exchange experts.
Conclusion
Utilize the information provided here to make a more informed decision on the most advantageous way an exchange can benefit you. Identify potential ways an exchange could enhance your portfolio based on this information and consider scheduling a consultation with one of our qualified professionals to strategize how a 1031 exchange could enhance your real estate investments.
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