1031 exchanges are a fantastic way to defer your capital gains taxes when selling qualifying real estate. But there are many more benefits to 1031 exchanges that go beyond tax deferral. In this article, we are going to discuss six benefits of a 1031 exchange that go beyond deferring capital gains taxes.
Increased Potential Income. Taxpayers conducting 1031 exchanges can sell their appreciated real estate and exchange into income-producing property with potentially greater cash-flow and appreciation.
Market Maneuverability. A 1031 exchange is a great vehicle for changing property types, allowing taxpayers to exchange out of and into different sectors of the real estate market. For example, a taxpayer could 1031 exchange out of an apartment building and into a retail property.
Relocation. 1031 exchanges are allowed between states, so you can use them to exchange out of your current state and into a different state with lower tax rates, for example.
Consolidation. If you own multiple properties and you want to simplify your situation, a 1031 exchange can help you exchange out of those multiple properties and into a single property.
CPEC1031, LLC – 1031 Exchange Company
At CPEC1031, LLC we have been facilitating 1031 exchanges of all types for over twenty years. Our team of qualified intermediaries can help guide you through all the details of your next 1031 exchange. Contact us today to learn more about the 1031 exchange process and see how we might be able to assist you in deferring your capital gains taxes. You can find us at our primary offices located in downtown Minneapolis.
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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