If you buy and sell rental properties, you may be interested in utilizing a Section 1031 exchange. However, the rules surrounding Section 1031 exchanges are quite complicated, and you may not know where to start.

Using this guide, you will be able to quickly determine if you are eligible to implement a Section 1031 exchange for the sale and purchase of your rental properties.

This flowchart covers the important criteria you need to consider when determining if you can implement a Section 1031 exchange, such as:

• The importance of using a Qualified Intermediary (QI) to help facilitate the Section 1031 exchange process.
• Whether you meet the appropriate ownership requirements and holding periods.
• Understanding the important deadline requirements for identifying and purchasing your replacement properties.
• Determining whether the exchange will be a partial or full 1031 exchange, and how “boot” can affect your situation.
• Other miscellaneous factors that are important to consider (e.g., related party transactions, reverse exchanges, etc.).

CLICK HERE to download the flowchart.

DPWM

Denver Private Wealth Management is an independent fee-based financial planning practice with 80+ years of experience in the financial industry. DPWM customizes portfolios based on your financial goals and works closely with you, your tax advisors and estate attorneys to form a comprehensive view of your financial situation. For more information or to set up a free consultation, contact us at info@denverpwm.com.