GRANITE BAY, CALIFORNIA, UNITED STATES, February 27, 2023 /EINPresswire.com/ — The 1031 real estate exchange timeline is a hard and fast rule that determines the amount of time an investor has to purchase a new property in exchange for the old one without being taxed on the returns of the original sale.
Granite Exchange Services, a certified real estate exchange service company, has launched a 1031 exchange time calculator that allows real estate investors to check exactly how much time they have to put in the exchange papers for a new property and make a purchase.
The 1031 exchange timeline states that investors have 45 days from the date of sale or relinquishment of the previous property to identify the new property they want to purchase. The identification of the replacement property needs to be done in writing to the person involved in the sale, such as the seller of the property.
Following the identification of the replacement property, the investor has 180 days from the point of relinquishment to make the final purchase of the replacement property. If this timeline is not met, the entire capital that they have gained becomes taxable.
1031 exchange is a legal procedure that is named after section 1031 of the Internal Revenue Code, which allows people to sell off their invest properties and exchange them for new ones. The capital gained between the exchange is exempt from taxes and can be utilized to continue on this property exchange indefinitely.
It is important to note, however, that these property exchanges can only be made on ‘like-kind’ properties, and the Internal Revenue Service states the limits within which people can make use of the 1031 exchange; for instance, there are a number of restrictions placed on vacation properties.
Technically, there are no limitations on how often or frequently investors can make use of the 1031 exchange. The more investors make use of the 1031 exchange service, the more their primary capital multiplies and increases their purchasing power.
It is important to note that the 1031 exchange timeline extension are not possible under any circumstances or hardships faced by the investors. The only way this deadline can be extended is in the case of presidentially declared disasters.
A representative of Granite Exchange Service said, “Granite Exchange settles for nothing less than the ideal solution for your wealth. With us on your side, you are ready for what’s next.”
About Granite Exchange Services
Granite Exchange Service is a full-service, 1031 real estate exchange service provider that is dedicated to helping its clients build wealth in the long term. They are a group of certified exchange specialists that provide 1031 exchange services to real estate investors, with over 20 years of experience in the field of real estate exchange.
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