Reverse 1031 exchanges offer the same tax-saving benefits of a forward exchange, but with a slightly different approach. Our reverse exchange qualified intermediaries have decades of experience assisting clients with their 1031 reverse exchanges in Nebraska. Give us a call today to get started with your Nebraska reverse exchange –877.373.1031.
How is a Reverse Exchange Different than a Forward Exchange?
Forward exchanges and reverse exchanges are both valid forms of the 1031 exchange that allow you to defer your capital gains on the sale of real property. But in a reverse exchange, you start at the end – so to speak. Instead of selling your relinquished property first, as you would in a forward exchange, you begin by acquiring your replacement property in a reverse exchange. Then you have 180 days to sell your relinquished property. Check out the whiteboard video below for some reverse exchange tips:
Reverse Exchange Rules
There are still several rules you need to follow in order to complete a successful reverse 1031 exchange. Here are a few of the most important:
- 180 Days to Complete. You’ve only got 180 days to finish your exchange. That clock starts ticking after you purchase your replacement property, and you’ve only got 180 days total to sell your relinquished property and finish your exchange. Figure out your deadlines with our calculator.
- Like-Kind for Like-Kind. Your relinquished property and your replacement property both need to be like-kind.
- Qualifying Purpose. Your properties need to be held for business or investment purposes. Property held for personal use is not allowed under section 1031.
- Debt, Equity, Value. Lastly, you want to make sure your replacement property is greater in debt, equity, and value compared to your relinquished property.
Nebraska 1031 Reverse Exchange Company
Regardless of the circumstances surrounding your 1031 exchange, it is always a good idea to speak with a qualified intermediary who has experience in your area. A qualified intermediary can walk you through all the steps of your exchange, prepare your 1031 documents, and answer all of your questions along the way. Contact a Nebraska reverse exchange professional today to learn more about the process and maximize your tax savings on the sale of real estate –877.373.1031.