There are a lot of potential issues that come with owning investment or business real estate. In this article, we are going to discuss three issues that a 1031 exchange can potentially solve.
You Want to Move Your Property to a Different Location
Sometimes real estate owners want to move to a different geographic area but they’re reluctant to do so because of where their investment property is located. 1031 exchanges can be done throughout the United States, so long as all involved property is like-kind and held for investment or business purposes. For example, you can sell a triplex in Minnesota and exchange into a retail space in Texas.
You Want Property That’s Less Management-Intensive
Many real estate investors that own management-intensive property (such as rental properties) don’t want to deal with the management and maintenance issues that come with owning such a property. This is especially true when investors start nearing retirement age. A 1031 exchange can help you sell your management-intensive property and exchange into a much less management-intensive property – all while deferring capital gains taxes.
You Don’t Want to Pay Capital Gains Taxes
One of the biggest causes for pause when considering a sale of real estate is the capital gains tax bill that comes with a straight forward sale. A 1031 exchange allows you to defer this capital gains tax bill and reinvest your proceeds into a bigger property that will continue to compound into the future.
Contact CPEC1031, LLC For Help With Your Like-Kind Exchange
CPEC1031, LLC is here to help with your next like-kind exchange of real estate! Our qualified intermediaries have been working on exchanges under section 1031 of the Internal Revenue Code for more than two decades. We have a proven track record of successful 1031 exchanges and can help you through the specific details of your real estate exchange. Contact our team today at our Twin Cities office, which is located in downtown Minneapolis. We work with clients throughout the Twin Cities Metro area, the state of Minnesota, and across the United States.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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