Miss a 1031 tax exchange deadline, and you could be faced with a crippling capital gains tax liability, potentially one that extends back decades, across multiple 1031 exchange purchases and sales.
1031 Tax Exchange Replacement Property
To receive the full benefit of a 1031 exchange, you need to buy a replacement property that’s of equal or greater value to the property you’re selling. After you’ve sold your investment property, you have 45 days to identify a replacement property. That might be easy enough to accomplish. But then, in order to meet the 1031 exchange requirements, you have to conclude your purchase of your replacement property within 180 days (from the date of the sale of your other property).
1031 Tax Exchange Deadlines
You might identify the property, put in an offer, go into escrow, and be well on your way to meeting the 1031 rules when a snag crops up with financing for your replacement property. Issues related to appraisals, titles, liens, ownership, taxes, insurance, and leases are fairly common, particularly with commercial properties. Outside of a 1031 exchange, these hurdles wouldn’t necessarily have dire consequences. You and the seller would work through the issues to the lender’s satisfaction, you’d get your financing, and the deal would go through. But if the clock’s ticking on your 180-day replacement property deadline, what might seem like a small problem can eat up time, until you’re right up against the 1031 deadline.
And the IRS isn’t flexible with 1031 timelines and doesn’t make concessions for extenuating circumstances – the 1031 exchange rules are set in stone. Miss the 1031 exchange period deadline, and you’ll owe capital gains taxes, plain and simple. But we can step in and help ensure that doesn’t happen.
Short-Term Bridge Loans At Competitive Rates
We offer short-term bridge loans, at competitive rates, and we can fund a loan quickly! Our in-house loan approval process takes just 24 hours, and we can typically provide the cash you need within 48 hours. For our loan approval process, we just need a financial statement, credit report, and 90 days of bank statements (or 2 years of tax returns).
Types Of Properties
1031 Tax Exchange Entities
We can provide loans for different legal entities that are involved in a 1031 tax exchange, including:
Please note: TriTalent Funding Group is based in Portland, and we offer bridge loans in Oregon, Washington, Idaho, and Texas, as well as other states. People often lump our loans into the category of “hard money loans,” but we make it as easy as possible to apply for a loan and get the funding you need, at competitive rates. In addition to bridge loans, we also provide short-term commercial loans, construction loans, and residential investment property loans.
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