Four Common 1031 Exchange Pitfalls to Avoid

Here are four key pitfalls to avoid to ensure the success of your 1031 exchange:

1. Choosing the wrong partners
Select a reputable Qualified Intermediary (QI), broker, and DST sponsor to avoid mismanagement and missed deadlines. The QI business is largely unregulated so you may want to work with firms that are owned by title companies or trust companies for extra comfort.

2. Starting Late
Begin the process early to meet critical deadlines—45 days to identify a replacement property and 180 days to complete the purchase. Reach out to your replacement property provisor – or Delaware Statutory Trust (DST) specialist early on.

3. Lack of Backup Options
Always have reliable backup properties identified to avoid missing deadlines if your primary choice falls through. DSTs can make attractive back up options.

4. Ignoring Tax Advice
Consult a tax adviser to ensure your exchange is eligible and to avoid unexpected tax bills.

Avoid these pitfalls by working with trusted experts. At 1031 DST Solution presented by Corcapa 1031 Advisors, we specialize in 1031 Exchange Replacement Properties in the form of Delaware Statutory Trust (DST) and Tenants in Common (TIC) Investments. We are your partners through every step of your exchange.

1031 DST Solution presented by Corcapa 1031 Advisors works with you to ensure your DST choices align with your objectives. Contact us at (949) 722-1031 or schedule a consultation to discuss your specific goals.