Taxes

How Long Should You Keep Your Tax Records for 1031 Exchange Purposes?

1031 Exchange Tax Documents

Many taxpayers wonder how long they should hold onto their tax records. A couple years? 10 years? Forever? In this article, we’re going to talk about how long to keep your tax records, specifically when it comes to 1031 exchanges of real estate.

The Safe Answer

There really isn’t a hard and fast rule about how long you should keep your tax forms. But the safest answer to the question posed above is forever. If you always have your tax forms on hand, you’ll always have them if a need arises. With the ubiquity of cloud storage services available, keeping these files stored digitally has never been easier.

1031 Exchange Documents

Keeping your tax documents on hand is especially important when it comes to 1031 exchanges. You want to be able to prove to the IRS that your exchange is legitimate at all times. If the IRS performs an audit a decade from now and they start asking questions about an exchange you did twenty years ago, you want to be sure that you have the required documents on file to back up your exchange.

1031 Exchange Your Property!

If you’re thinking about doing a 1031 exchange on your property, you’ve come to the right place! At Commercial Partners Exchange Company, we help taxpayers large and small with their like-kind exchanges of real estate. Our team has two decades of experience that we put to work on every exchange we facilitate. Reach out to us at our downtown Minneapolis office today to learn more about the 1031 exchange process and get started with 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

 

2019 Long-Term Capital Gains Tax Rates

Capital Gains Taxes in 2019

Capital gains taxes are top-of-mind for anyone looking to sell a piece of property. For many investors, if capital gains taxes are too high, they won’t sell their property. In this article, we are going to discuss the 2019 long-term capital gains tax rates and how a 1031 exchange can help you defer these taxes when selling property.

Capital Gains Tax Rates in 2019

The table below outlines the 2019 long-term capital gains tax brackets by income and filing status:

Capital Gains Taxes

Consider a 1031 Exchange

A 1031 exchange can help you avoid these hefty capital gains tax burdens. By moving all of your net proceeds into a new replacement property, you can effectively defer your capital gains taxes. This has the added benefit of keeping your money working for you in a continued investment – compounding and building wealth over time.

Meet with a Qualified Intermediary

If you’re mulling over the possibility of doing a 1031 exchange on your piece of real estate, do yourself a favor and meet with a qualified intermediary to discuss your situation. At Commercial Partners Exchange Company, our intermediaries have more than two decades of experience facilitating exchanges for taxpayers in all industries and geographic locations. Reach out to our 1031 exchange professionals today at our downtown Minneapolis office to talk about the details of your exchange and start saving money on taxes right away!

  • 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

 

What’s the Difference Between Deferring & Avoiding Taxes?

Tax Deferral

When some people discuss the benefits of 1031 exchanges, they highlight how a 1031 exchange can help you “avoid” taxes. What they really mean is that 1031 exchanges can help you “defer” taxes. In this article, we are going to talk about the difference between tax deferral and tax avoidance.

Tax Avoidance

Put simply, avoiding taxes is illegal. The term “tax avoidance” implies that the taxpayer is actively working to avoid paying the taxes that they owe. This is different from the tax deferral benefits of a 1031 exchange. With tax deferral, you are simply postponing your tax payment until a later point in time – in this case, whenever you decide to sell your replacement property.

Tax Deferral

Tax deferral, on the other hand, is perfectly legal under the right circumstances – such as a 1031 exchange. A like-kind exchange allows you to defer (not avoid) your capital gains taxes when selling real estate. The difference is that you are deferring your taxes until a later date (if/when you decide to sell your replacement property), rather than avoiding them completely.

Start a Like-Kind Exchange Now

If you’re looking to start a like-kind exchange, reach out to our qualified intermediaries today! At Commercial Partners Exchange Company, we have two decades of experience helping clients through their 1031 exchanges. Our primary office is located in downtown Minneapolis, but we work with clients throughout the state of Minnesota and all around the United States. Contact us today to learn more about our 1031 exchange services and start your like-kind exchange now!

  •  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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

 

Capital Gains Tax – When You Owe & When You’re Exempt

Capital Gains Tax

If you’ve ever sold a piece of real property, you’re likely familiar with capital gains taxes. In this article, we are going to talk about capital gains taxes – when you owe them and when you’re exempt from them.

Capital Gains Taxes on Real Estate

Capital gains taxes are taxes imposed on the sale of certain assets – such as real estate. When you sell real estate in a standard transaction, you will owe capital gains taxes on that sale.

Defer Taxes with a 1031 Exchange

If you want to avoid a big capital gains tax windfall when selling real estate – a 1031 exchange is your ticket! Like-kind exchanges allow you to defer your capital gains taxes on the sale of real property. In order to defer your taxes, you need to redeploy your sales proceeds into a new (bigger) replacement property, and meet various other requirements set out by the IRS. When done correctly, a 1031 exchange can help you avoid a huge tax hit. The biggest benefit is that you can keep your money working for you in a continued investment – building wealth over time.

Exchange Your Like-Kind Property

Like-kind exchanges can get complicated quickly. That’s why it’s important to work with a skilled intermediary on your exchange. The qualified intermediaries at Commercial Partners Exchange Company can help you through every stage of your exchange. We can advise you on replacement property, prepare your closing documents, and answer all of your questions. Give us a call today to set up a time to chat about your exchange. Our main office is in downtown Minneapolis, but we work with clients 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

How to Defer Taxes When Selling Real Estate

Real Estate Taxes

When you sell a piece of real estate, you hope to make as much profit as possible. But with the capital gains taxes assessed on the sale, you may end up owing more than anticipated. A high capital gains tax bill may even be enough to dissuade you from selling your property. A 1031 exchange can solve many of these problems for you. In this article, we are going to talk about how a 1031 exchange can help you defer capital gains taxes when selling real estate.

Using a 1031 Exchange to Defer Taxes

A 1031 exchange is a great tool you have at your disposal to defer taxes on the sale of real estate. How, you ask? Instead of selling your property outright, taking the net proceeds, and paying the required capital gains taxes, you can reinvest your net proceeds into a like-kind replacement property. This is the 1031 exchange in a nutshell. No, you don’t get to pocket the sales proceeds, but you do get to defer a potentially huge capital gains tax hit. As an added bonus, you get to keep your money working for you in a continued investment property.

Capital Gains Tax Deferral

Capital gains taxes can really add up when selling real estate. Why not defer those taxes and keep your money working for you in a continued investment? That’s what a 1031 exchange allows you to do.  Reach out to the qualified intermediaries at Commercial Partners Exchange Company to learn more about the benefits of a 1031 exchange and to see if your property is a good fit. Our main office is located in downtown Minneapolis, but we work with clients throughout the state of Minnesota, and around 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved