When conducting a 1031 exchange, an exchangor has many options to consider. In this article, we are going to discuss some of the various options available to taxpayers conducting 1031 exchanges, and the benefits of each.
1031 Exchange Options
Here are some of the many options you have when exchanging 1031 property:
- An exchangor can exchange out of a property in one area, and into a property in another area, so long as both properties are within the US.
- An exchangor can exchange raw land for income-producing real property.
- An exchangor can use a 1031 exchange to consolidate multiple properties into one property that is easier to manage.
- An exchangor can exchange out of a management intensive property and into a property that has fewer management fees.
Each of these scenarios has its benefits. However, every taxpayer conducting an exchange is different and should approach their situation strategically. That’s where a qualified intermediary can really be a big help. When you hire a qualified intermediary for your 1031 exchange, they are your advisor for all things related to your exchange. They can answer all of your questions throughout the exchange process.
Minnesota 1031 Accommodators
Working with a qualified intermediary is the best way to ensure a successful 1031 exchange. At Commercial Partners Exchange Company, our 1031 accommodators have been facilitating 1031 exchanges of real estate for decades. We have the knowledge, skills, and experience to help you through each step of your 1031 transaction – from document preparation to closing. Contact us today to speak with one of our qualified intermediaries about your like-kind exchange of real property.
- 1031 Hotline: If you have questions about 1031 exchange options, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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