steps of a 1031 exchange in los angeles

1. **Preparation:**

- Identify a qualified intermediary to handle the exchange and hold funds from the sale.

- List the property for sale and ensure compliance with IRS Section 1031 regulations.

- Consult with a tax advisor and real estate professional familiar with 1031 exchanges for guidance.

2. **Execution:**

- Sell the original property and ensure the proceeds are directly transferred to the intermediary to prevent tax liability.

- Within 45 days, identify potential replacement properties that align with the exchange requirements.

- Complete the acquisition of the chosen replacement property within 180 days, finalizing the exchange through the intermediary to defer capital gains taxes effectively.

Following these bullet points can help streamline the 1031 exchange process in Los Angeles, allowing investors to defer taxes and reinvest in like-kind properties while navigating the specific regulations and timelines mandated by the IRS. Learn More