1031 exchanges are a great tax-saving tool, but many taxpayers aren’t aware of the numerous benefits provided by this section of the Internal Revenue Code. In this article, we are going to discuss a few things everyone should know about 1031 exchanges.
Your Property Needs to Be Used for Investment Purposes
To determine if you qualify for 1031 exchange treatment, you need to first make sure that your property fits the use requirement. All property used in a 1031 exchange must be used for investment or business (not personal) purposes.
1031 Exchanges can Only be Used for Real Estate
The Tax Cuts & Jobs Act restricted section 1031 to real estate only. That means items of personal property (artwork, aircraft, etc.) can no longer be used in a like-kind exchange transaction.
You’ve Only Got 180 Days
Once you begin the 1031 exchange process by selling your relinquished property, you only have 180 days to complete your exchange.
CPEC 1031
At CPEC 1031, our team of qualified intermediaries have more than twenty years of experience facilitating like-kind exchanges under section 1031 of the Internal Revenue Code. If you’re looking to save money on capital gains taxes when selling real estate, a 1031 exchange may be the right fit for you. Contact us today to learn more about our services and experience and to set up a time to chat with our team of 1031 intermediaries. We are located in the heart of downtown Minneapolis, but also provide exchange services to clients throughout the country.
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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