1031 exchanges can be a great tax-saving alternative to selling property in a traditional sale. However, some taxpayers still don’t understand why they should consider a 1031 exchange for their property. In this article, we are going to lay out three situations in which it makes sense to conduct a 1031 exchange.
You Want to Diversify Your Assets
With a 1031 exchange, you can move into and out of any industry you want. Thus, it is a great way to diversify your portfolio and keep your money working for you over time.
You Want to Merge or Divide Properties
If you want to merge several properties into a single property, or exchange one large property for several smaller properties – a 1031 exchange is a great tool for accomplishing those goals!
You Want a Less Management Intensive Property
Many people utilize the 1031 exchange to move from a management intensive property (like an apartment building), into a less management intensive property. This is especially useful for taxpayers who are entering into retirement and don’t want to have to deal with all the hassles that come with owning a management intensive property.
1031 Exchange Professionals
The 1031 exchange professionals at Commercial Partners Exchange Company are here to help you through all the details of your next like-kind exchange. Our team of qualified intermediaries has been facilitating exchanges across Minnesota and the United States for more than two decades. We put our extensive knowledge to work for you on your exchange and work with you to ensure that you understand the process. Contact us today to set up a time to meet with our 1031 exchange professionals about your next exchange!
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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