There are many reasons to consider engaging in a 1031 exchange, but many taxpayers may not be aware of them. In this article, we are going to discuss a handful of reasons to consider a 1031 exchange.
Why 1031?
Keep your money working for you. Rather than pay unnecessary taxes, use the money to purchase more investment property.
Compound your wealth. Maximize returns by moving equity to the most advantageous investments available.
Eliminate troublesome properties. In order to avoid extensive management and maintenance problems, sell older properties in exchange for new less management intensive properties.
Diversify your investments. Exchange out of one relinquished property into multiple replacement properties to expand your portfolio into different geographic areas or business segments.
Is it “Cashing Out”?
No. The government’s goal in deferring taxes on exchanges is to encourage investors to continue to buy and sell property. The justification? If an individual is NOT cashing out, why should the IRS tax them on the “theoretical gain” in an exchange from one like-kind property to another?
How to Learn More?
Whether you are considering a Straight Forward Exchange, Reverse Exchange, Build-To-Suit Construction Exchange, or something else choose the right partner.
Get the Help You Need with Your 1031 Exchange
Get the help you need with your 1031 exchange today by contacting a qualified intermediary. At CPEC1031, our intermediaries have over twenty years of experience assisting clients from around the United States on their 1031 exchanges. Reach out to our like-kind exchange specialists today to learn more about the 1031 exchange process and how it can help you save money in capital gains taxes. We are here to help. Find us at our main office in downtown Minneapolis, or at one of our satellite offices around 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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