Covid-19 Economy & 1031 Exchanges
COVID-19 and how it has affected the housing market in the wake of the US government crackdown on the housing market and the financial markets in general.
Property inspections and housing orders have been suspended indefinitely, and the closure has pushed up vacancy rates in many areas. The property market has not been spared and prices have fallen, but for those looking to reshape the property market, there is a silver lining. It's true, it is a buyers market, and if you sell your existing property, you can wait until the market becomes desirable, perhaps through a well-planned purchase. The US economy has been rocked in an unprecedented way by the US government's efforts to control the spread of a novel coronavirus, and the housing markets have not been spared.
If you need additional flexibility, a 1031 swap allows you to first buy a new property, then buy an assigned property, and then sell within 180 days. The most common exchange structure after 10 31 is the trading of futures and then the sale or resale of the assigned objects in the future.
1031 reverse exchange —
your best option if you can’t sell first
If you don't want ownership of the new property or simply don't know how to navigate the IRS "Safe Harbor policy, not every QI will make it easier to reverse. Reverse exchanges are more complex than futures exchanges, and that is one reason why it might be worth choosing your QIs carefully. You can do this by holding a replacement property with a qualified intermediary (a "QI") until you can sell the property.
Work with the nation’s most trusted 1031 facilitator
At Granite Exchange, the attorney general was the lead authority in structuring 1,031 exchanges. In fact, he co-authored the IRS Revenue Procedure for Reverse Exchanges and a comprehensive guide to reverse trading with the Securities and Exchange Commission. Unlike QI, you are equipped to facilitate a complicated exchange in complicated times.
Granite Exchange, we’ve put together an industry-leading track record of 1031 success, across tens of thousands of transactions and more than 20 years in the business.
Call Granite Exchange today at 800-899-6959.
Our Certified Exchange Specialists® (CES®) can explain the process and guide you through every step of the exchange to ensure that the exchange is done properly.