Don’t Miss Out on a 1031 Exchange: What Homeowners and Investors Need to Know
If you or your clients are thinking about selling an investment property, one of the smartest tax strategies to consider is a 1031 Exchange . This powerful tool lets you defer capital gains taxes by reinvesting the proceeds into another like-kind property. But here's the catch: timing is everything —and we get questions about it all the time. ❓ “Can I start a 1031 Exchange after the property has already sold?” Unfortunately, the answer is no . One of the most common mistakes we see is when clients call after closing, hoping to start a 1031 Exchange. By then, it’s too late. To successfully complete a 1031 Exchange, the process must begin before the property sale closes . That means: The 1031 Exchange must be opened while the property is still in escrow . You (the Exchanger) must sign the exchange agreement prior to closing . If you’re doing a reverse exchange (buying first), the paperwork must be signed before the purchase closes. 📄 What’s in the Exchange Agreemen...