If you are interested in pursuing a 1031 exchange, the first thing you need to do is to make sure your property qualifies for 1031 exchange treatment. In this article, we are going to offer up three ways you can qualify your 1031 exchange property to make sure it can be utilized in a like-kind exchange.
Is Your Property Like-Kind Real Estate?
The only property that qualifies for 1031 exchange treatment is like-kind real estate. All types of personal property are disqualified from 1031 exchange treatment. The good news is that most real estate is like-kind to most other types of real estate.
Is Your Property Held for Personal Use?
The next thing you need to consider is how you are holding your property. Is your property held primarily for personal use (like your primary home)? If so, it does not qualify for 1031.
Is Your Property Held for Investment or Business Use?
If your real property is held for investment use or for use in your trade or business, then it meets the basic criteria for 1031 exchange treatment.
Experienced Qualified Intermediaries
At CPEC1031, LLC we focus entirely on 1031 exchanges of investment property throughout the United States. Whether you’re selling an apartment complex, retail space, or some other type of investment real estate, you may be able to defer your capital gains taxes with a like-kind exchange. Let our qualified intermediaries facilitate your exchange. We have more than twenty years of experience in the 1031 exchange industry. Give us a call today at our downtown Minneapolis office to learn about the full range of our exchange services.
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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