Reverse like-kind exchanges offer taxpayers an advantageous way of locking up replacement property in a hot seller’s market. Contact our team of Fargo qualified intermediaries today to discuss your like-kind exchange –877.373.1031.
Reverse Like-Kind Exchanges in Fargo
If you’ve never done one before, you might be wondering what a reverse like-kind exchange even is. There are several variations of like-kind (aka 1031) exchanges available to taxpayers. The two most basic forms are the forward exchange and the reverse exchange. A reverse exchange achieves the same result as a forward exchange, but works in the opposite direction. Whereas in a forward exchange you sell your relinquished property, and then purchase your replacement property, a reverse exchange begins with the purchase of the replacement property and the subsequent sale of your relinquished property. In a hot seller’s market, this can be an effective tool to lock up a piece of real estate before it goes to someone else.
Regulations & Requirements
Reverse exchanges of property must abide by the same rules and requirements of all like-kind exchanges. Here are the most important requirements that must be met by any reverse exchange:
- Like-Kind. Property exchanged in a 1031 transaction must be like-kind. In the world of real estate, that basically means any type of real property within the US.
- Time Periods. You also have limited time frames in which to complete your exchange. You have 180 days total from the day you sell your relinquished property. The first 45 of those days is set aside for identification of your new replacement property.
Contact a Fargo 1031 Exchange Intermediary
If you are interested in pursuing a like-kind exchange of your property, your first step should be to contact a qualified intermediary or 1031 exchange company. A skilled intermediary can answer all of your questions, help you determine whether your property qualifies for 1031 treatments, and prepare all of your documents so you don’t have to. Our Fargo qualified intermediaries have decades of experience helping taxpayers throughout North Dakota. Give us a call today to set up your reverse exchange –877.373.1031.