Reverse 1031 exchanges are a great way to defer taxes on the sale of your real property when you find a perfect replacement property before you are able to sell your old relinquished property. Our Rochester qualified intermediaries have been working on reverse 1031 exchanges in Minnesota and around the country for nearly two decades. Give us a call today for help with your Rochester reverse exchange – 877.373.1031.
How a Reverse Exchange Works
While both forward and reverse exchanges have the same end result of tax deferral, reverse 1031 exchanges differ from forward exchanges in the way they’re set up. During the course of a forward exchange, the taxpayer sells their relinquished property, and then identifies and closes on their replacement property within the 45 day and 180 day timeframes. In a reverse exchange, the taxpayer closes on the new replacement property before they sell their old relinquished property.
Reverse 1031 Exchange Tips
Take a look at this video for some tips on arranging a successful reverse 1031 exchange in Minnesota.
The reverse exchange can be very helpful if you find a great replacement property before finalizing the sale of your old property. Say you have an apartment complex in Rochester. You aren’t planning on selling it, but you find a new apartment building that’s in better shape and you decide to upgrade. With a reverse 1031 you can close on the acquisition of the new building, and then finish the sale of the old building within the required time frames. But reverse exchanges aren’t just for real estate. Here are a few different types of property that can be reverse 1031 exchanged:
- Real Estate
- Business & Agricultural Equipment
- Gold Coins
The same like-kind requirements apply to reverse exchanges. You also need to have held the property for investment or business purposes (and not personal use).
Rochester Reverse 1031 Exchange Services
Reverse exchanges are a great way to keep your money working for you within your investments instead of paying that money out in capital gains taxes. If you are looking to defer your gains with a reverse exchange on property in Rochester, MN – we have the resources and experience necessary to ensure that your exchange is successful. Contact us today to learn more about 1031 reverse exchanges and for help executing your reverse exchange in the Rochester area – 877.373.1031.