A 1031 exchange is a great way to defer paying taxes on the sale of your investment property. But how often can you do it?
The good news is that there is no limit to the number of times you can complete a 1031 Exchange for real estate. You can do it over and over again, as long as you follow the rules.
Of course, there are some restrictions. For instance, you must reinvest the proceeds from the sale of your property into a "like-kind" property. That means the new property must be of similar nature, character, or utility as the property that was sold.
In addition, you must complete the exchange within a certain time frame. You have 45 days from the date of the sale of your property to identify potential replacement properties, and 180 days from the date of the sale to complete the purchase of the replacement property.
If you adhere to these guidelines, you can complete a 1031 exchange as many times as you want. It's a great way to defer paying taxes on your investment property and build your portfolio over time.
Ready to Learn More About The 1031 Exchange Process?
A 1031 exchange is a great way to defer paying taxes on your investment property. And, as we've demonstrated in this blog post, there's no limit to how many times you can do it. Just make sure you follow the rules and guidelines, and you'll be able to take advantage of this tax-deferred exchange again and again.
If you have additional questions or you'd like to learn more about the 1031 Exchange process, simply contact our qualified intermediaries at (888) 508-1901 to schedule a consultation.
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