1031 exchanges are a great way to defer your capital gains taxes when selling real estate. In order to qualify for that tax deferral, you need to meet various benchmarks with your 1031 exchange. The first thing you need to determine is whether your property even qualifies for 1031 exchange tax deferral. Section 1031 only applies to real property (no personal property) that is held for use in your trade or business, or for investment purposes. Selling your primary home and purchasing a new primary residence would not qualify.

Perham 1031 Exchange Time Constraints

You also need to be aware of certain time constraints. Once you sell your relinquished property, the clock starts ticking and you only have a total of 180 days to complete your exchange. Within that 180 day exchange period is your 45 day identification period during which you must identify in writing the replacement properties you intend to exchange into. These are strict deadlines that you don’t want to miss. A qualified intermediary can make sure you are aware of these and other requirements so that you don’t miss anything.

The qualified intermediaries at CPEC1031, LLC provide like-kind exchange services to clients throughout the state of Minnesota, including the cities of: Perham, Frazee, Vergas, Richdale, Richville, Bluffton, Wadena, Deer Creek, and more!

1031 Exchanges in Perham, MN - Save on Capital Gains Taxes

A 1031 exchange has many benefits – chief among them being that they allow you to save money on capital gains taxes when selling real estate that qualifies for 1031 exchange treatment. In order for your property to qualify it must be held for investment or business use and it must be exchanged for other like-kind real estate. If you do everything correctly, you can defer your capital gains tax burden on the sale and keep your hard-earned money working for you in a continued investment. Contact CPEC1031, LLC today to learn more!