There are a lot of myths and misconceptions out there about 1031 exchanges. We’re here to dispel these misconceptions! In this article, we are going to talk about a few myths and misconceptions about 1031 exchanges of real estate.
Myth: 1031 Exchanges are Only For Big Investors
1031 exchanges are available for all United States taxpayers to use. Section 1031 is written into the Internal Revenue Code and applies to all US taxpayers. You don’t have to be a huge real estate investor to utilize the 1031 exchange for your benefit.
Myth: All Property is Eligible for 1031 Exchange
Not all property is eligible for 1031 exchange treatment. Some property is excluded outright – such as personal property. That means only real estate can be considered for 1031 exchange. But not all real estate is eligible either. Any exchanged real estate must be like-kind and held for investment purposes, as opposed to personal use.
Myth: You can Only do a 1031 Exchange at Certain Times During the Year
1031 exchanges are available year round! However, you do need to be aware of your exchange time limits and be extra careful when an exchange crosses over into a new year (for tax reporting purposes).
Get Started with a 1031 Exchange Today
Get your 1031 exchange of real estate off the ground today by speaking with a qualified intermediary from CPEC1031. Our team has over two decades of experience facilitating like-kind exchanges in Minnesota and across the country. We have the skills and experience to make sure that your exchanges goes off without a hitch. Contact us today to learn more about our services, the exchange process, and how we can help. You can find us at our offices located in downtown Minneapolis.
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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