There are many reasons why a taxpayer might engage in a 1031 exchange. In this article, we are going to talk about three times you might want to consider a 1031 exchange of your property.
You Want to Move to a Different Area
All property involved in a 1031 exchange must be like-kind. Thankfully, the definition of like-kind is quite broad and can include investment real estate anywhere in the United States. That means you can use a 1031 exchange to get out of a certain geographic area and into another. Perhaps you want to move your property to a more tax-advantageous state. Or perhaps you are retiring and moving from Minnesota down to Florida and you want to be closer to your investment property. A 1031 exchange is a great option for both of these scenarios.
You Want to Move Out of Management-Intensive Property
1031 exchanges can also be done between different industry sectors. For example, you could exchange a management-intensive property like an apartment complex for a less management-intensive property.
You Want to Defer Your Capital Gains Taxes
Ultimately, 1031 exchanges are about tax deferral. When done correctly, a 1031 exchange allows you to defer your capital gains taxes on the sale of your property. This is a huge benefit for taxpayers who want to keep their money working in a continuation of investment.
1031 Exchange Services in Minneapolis
If you are searching for help with your 1031 exchange, look no further! CPEC1031, LLC has decades of experience working on like-kind exchanges of all types both in Minnesota and across the country. Our team is ready and waiting to help you through all the specifics of your next real estate exchange. We can help prepare your documentation, make sure you are meeting all the 1031 exchange requirements, and get you ready to close on your properties. Reach out to our team of 1031 exchange professionals today at our downtown Minneapolis office to learn more about our services and see how we can help!
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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