1031 Exchange

Even Small Investors Can Benefit from 1031 Exchanges

Small Investor 1031 Exchange

A lot of people (incorrectly) assume that 1031 exchanges are only for big investors. The fact of the matter is that any United States taxpayer can benefit from the tax-saving benefits of 1031 exchanges – even small “mom and pop” investors. In this article, we’re going to talk about how small investors can avail themselves of the benefits of section 1031 of the Internal Revenue Code.

1031 Exchange Rules

While there are many rules that govern how 1031 exchanges operate, there are no rules that prevent a small-time investor from conducting an exchange of real estate. Here are the important rules you need to be aware of if you’re a small investor interested in doing a 1031 exchange:

  • Timing. The first rule is timing. Once you sell your relinquished property, you only have 180 days to complete your exchange.

  • Property. All property involved in the exchange must be like-kind real estate. No personal property, or real estate held for personal use.

  • Debt, Equity, Value. You also need to make sure that your replacement property greater than your relinquished property in terms of debt, equity, and value.

1031 Exchanges for Small Investors

Commercial Partners Exchange Company works with investors large and small on their 1031 exchanges of real estate. Our qualified intermediaries have more than two decades of experience helping taxpayers defer their capital gains taxes on the sale of real property. Contact us today to learn more about our like-kind exchange services and set up your appointment with one of our qualified intermediaries. You can find us at our main office 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

How 1031 Exchanges Effectively Stimulate the Economy

1031 Exchange Stimulate the Economy

1031 exchanges are great for the economy, but many people don’t know why that’s the case. In this article, we are going to explain how 1031 exchanges are effective at stimulating growth in the US economy.

Incentivizing Investment

1031 exchanges incentivize investment in real estate. A huge capital gains tax bill is often a big deterrent for an investor when considering a real estate sale. Since section 1031 allows investors to defer this potentially large tax windfall, it incentivizes them to sell their property and reinvest their capital into a new real estate investment.

Moving Capital Around

This has the added bonus of keeping capital moving in the real estate industry. When capital gains taxes are scaring off sellers, the market can become stagnant. 1031 exchanges offer a good reason for investors to reinvest their net proceeds from a real estate sale into a new replacement property.

Creating Jobs

1031 exchanges are also a great method for creating jobs – particularly when it comes to build-to-suit exchanges. These exchanges involve adding construction improvements to the replacement property. The catch is that these improvements need to be finished in a short time period – which means a lot of great construction jobs can be created very quickly.

Like-Kind Exchanges

Like-kind exchanges of real estate are great for taxpayers and the economy as a whole. Let us help you save money in capital gains taxes with a 1031 exchange. Our qualified intermediaries have twenty years of experience working on 1031 exchanges all over the country. We can prepare all of your documents, advise you on replacement property, and answer all of your questions. Give us a call today to discuss the specifics of your 1031 exchange. Our primary office is in downtown Minneapolis, but we work with taxpayers throughout the United States.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

What Real Estate Attorneys Need to Know about 1031 Exchanges

Real Estate Attorneys 1031 Exchange

It’s important for real estate attorneys to know the like-kind exchange process and the associated benefits. In this article, we are going to discuss what real estate attorneys need to know about 1031 exchanges in order to better advise their clients.

1031 Exchange Process & Benefits

Every real estate attorney should have a basic understanding of the 1031 exchange process and its benefits. Here is a quick and easy breakdown of the like-kind exchange process:

  • A taxpayer sells a piece of real estate (the relinquished property).

  • Within 45 days of selling the relinquished property, the taxpayer identifies new replacement property.

  • Within 180 days of selling the relinquished property, the taxpayer reinvests their sales proceeds into the new replacement property.

When done correctly, this process ensures that the taxpayer will defer their capital gains taxes on the sale.

Partner with a Qualified Intermediary

The best course of action you can take is to partner with a qualified intermediary when dealing with a 1031 exchange of real estate. Qualified intermediaries understand section 1031 (as well as various relevant private letter rulings by the IRS) inside and out. They are your go-to resource for all things 1031 exchange, and your best bet for guiding your client in the right direction. Reach out to a qualified intermediary today to get a better understanding of the process.

Defer The Tax – Maximize Your Gain!

A 1031 exchange of real estate allows you to defer your capital gains taxes when selling real estate as long as you reinvest your sales proceeds into a new replacement property. This allows you to maximize your gain in the most tax-advantageous arrangement possible. The qualified intermediaries at Commercial Partners Exchange Company have twenty years of experience working on like-kind exchanges of real property. Let us help you through the exchange process. You can find us at our offices 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Rethink Your Tax Considerations for Retirement Planning

Tax Considerations 1031 Exchange

There’s a lot to consider when planning for retirement. One useful retirement planning tool that many people don’t even think of is the 1031 exchange. In this article, we’re going to talk about how to rethink your tax considerations when planning for retirement.

Tax Considerations

One of the biggest factors involved in retirement planning is taxes. You want to prepare yourself for retirement in the most tax-advantageous way possible. There are a lot of strategies that should be discussed with your financial planner, CPA, or tax advisor.

Consider How a 1031 Exchange Might Fit Into Your Retirement Plan

A 1031 exchange can be a great retirement planning tool. If you currently own a management-intensive property that you don’t want to deal with in retirement, a 1031 exchange allows you to sell that property and acquire another one while deferring your capital gains taxes. As a result, you can exchange your management-intensive property for a property that provides more hassle-free passive income.

Set up Your Like-Kind Exchange

Engaging in a 1031 exchange, rather than an outright sale, of your real estate can help you avoid a huge capital gains tax windfall. While every taxpayer can avail themselves of the tax-saving benefits of a 1031 exchange, the exchange process is complicated and requires the help of a pro. That’s where the qualified intermediaries at Commercial Partners Exchange Company come in. We have more than two decades of experience facilitating 1031 transactions for clients in Minnesota and across the United States. Contact us today for help setting up your like-kind exchange.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Qualified Opportunity Fund – Advantages vs. Disadvantages

Qualified Opportunity Fund

Qualified opportunity funds exist as an alternative method for deferring capital gains taxes. QOFs were created by Congress to encourage investors to move their money into economically challenged areas. In this article, we are going to talk about the advantages and the disadvantages of qualified opportunity funds.

Advantages of Qualified Opportunity Funds

Qualified opportunity funds offer investors the ability to defer capital gains taxes on the sale of real estate, businesses, stocks, etc. by moving those gains into a qualified opportunity fund. If you hold your investment for 5 years, 10% of your gains will be forgiven. If you hold your investment for 7 years, another 5% of your gains will be forgiven.

Disadvantages of Qualified Opportunity Funds

The biggest disadvantage of a qualified opportunity fund is the looming deadline of 2026. Barring any future changes, any tax-deferral you have availed yourself of in a qualified opportunity zone will come due on December 31, 2026. As a result, it may be more advantageous to defer your capital gains taxes in a 1031 exchange, which has no hard deadline. With 1031 exchanges you can theoretically continue exchanging into new replacement property and defer your taxes indefinitely.

Minneapolis Like-Kind Exchanges

If you’re searching for an experienced, reputable company to handle your like-kind exchange of real estate, you’ve come to the right place! Commercial Partners Exchange Company has been facilitating real estate exchanges for more than twenty years. Our qualified intermediaries can help you through every stage of the 1031 process – answering your questions and advising you each step of the way. Contact us today at our Minneapolis office to learn more about our services and discuss the details of your real estate exchange.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved