What is a 1031 exchange?
A 1031 exchange allows an investor to sell qualifying investment real estate and reinvest the proceeds into like-kind replacement property while deferring capital gains and depreciation recapture taxes.
When should I speak with BCE?
Ideally before your property sale closes. Early planning allows more time to source a QI, review replacement property options, and prepare for the 45-day identification window.
What is the 45-day identification period?
Once your relinquished property closes, you have 45 calendar days to identify potential replacement properties in writing. This period is strict and cannot be extended.
What is the 180-day closing requirement?
You must complete the acquisition of your replacement property within 180 days of the relinquished property closing, inclusive of the 45-day identification period.
Does BCE serve as the Qualified Intermediary?
No. Investors work with an independent QI. BCE coordinates with your QI and other advisors throughout the process but does not replace tax, legal, or exchange counsel.
What types of properties can I exchange from?
Investors commonly exchange from apartments, commercial buildings, rental homes, land, and other investment real estate. Primary residences generally do not qualify.
Can I exchange into multiple replacement properties?
In many cases yes, subject to the applicable 1031 identification rules. Consult your tax advisor for your specific situation.
Does BCE provide tax or legal advice?
No. BCE does not provide tax, legal, or accounting advice. Investors should consult their CPA, attorney, and Qualified Intermediary before completing a 1031 exchange.