I want to make sure that you are aware of the steps that need to be followed in order to properly execute a Section 1031 Exchange

• Before the property you are selling closes, you need to set up an arrangement with an exchange agent (related to title insurance company). I can refer an exchange agent or you can ask your realtor for a referral.
• All moneys must stay in escrow until the exchange is completed or the 180-day deadline has lapsed.
• The property or properties you are exchanging into must be identified to the exchange agent within 45 days of the sale closing.
• The exchange must be completed within 180 days which includes the 45 days of the sale closing.
• Debt on the new property must be equal to or exceed the debt on the property sold to defer all taxable income.
• The title of the property received needs to be the same as the property sold.

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