By Walter Eckert, CPA, CVA, CEPA,  Director at Blue & Co.

Finding the right replacement property before selling your current investment property can create both an opportunity and a timing challenge. A Reverse 1031 Exchange may allow you to acquire the replacement property first while still potentially deferring gain on the sale of your relinquished property.

However, these transactions require careful coordination. Strict IRS requirements, a qualified intermediary, financing considerations, and the 180-day deadline to sell the existing property all need to be addressed before moving forward.

Watch the video for an overview of how a Reverse 1031 Exchange works and the key considerations investors should understand.

Navigating Your Real Estate Transaction

If you are evaluating a real estate sale, replacement acquisition, or 1031 Exchange strategy, contact your Blue & Co. advisor. Our Real Estate team can help you assess the tax implications and coordinate planning with our team of experts.