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

 

Your 1031 Exchange Guide for 2019

1031 Exchange in 2019

A new year brings new possibilities. If you’re thinking about selling a piece of real estate in 2019, you may want to consider a 1031 exchange instead of an outright sale. Doing so could save you a lot of money in taxes. This article will act as a brief guide to 1031 exchanges in 2019.

Remember the New Rules

2018 brought some significant changes to 1031 exchanges, as the Tax Cuts & Jobs Act went into effect. These new rules will remain in effect in 2019 so it’s important to keep them in mind. Most importantly, remember that you can only do 1031 exchanges of real property – personal property is no longer eligible for 1031 treatment.

Give Yourself Plenty of Lead Time

1031 exchanges can get very complicated very quickly. With so many moving parts and so much that can potentially go awry, it’s a good idea to give yourself as much lead time as possible. That means reaching out to a qualified intermediary before you sell your relinquished property. The earlier you start planning, the better.

Contact a Qualified Intermediary

If you’re thinking about doing a 1031 exchange contact Commercial Partners Exchange Company right away. With more than twenty years of experience, our intermediaries provide the highest level of service to our clients during their 1031 exchanges. We can help you through every step of the like-kind exchange process – filling out your paperwork for you, advising you on replacement property, and more! Contact us today to learn more about how we can help you save taxes on your next real estate sale. You can find us at our main office 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

 

Timing Matters in a 1031 Exchange

Timing Matters in a 1031 Exchange

Timing is everything in a 1031 exchange. In this article, we’re talking about the various timing issues that can potentially arise before, during, and after a 1031 exchange.

1031 Timelines

1031 exchanges are governed by strict timelines. You’ve got 180 days total to complete your 1031 exchange. The first 45 of those days are set aside as your identification period, in which you need to identify your replacement property.

If you go over these timelines, your exchange will fail and you will recognize your capital gains taxes. There are still options if you find yourself in this situation (DSTs being one option), but it’s best to avoid exceeding these time frames when possible.

Holding Periods

In addition to the 1031 exchange time periods, you also need to be cognizant of your timing after your complete your exchange. After you complete an exchange, you can’t just turn around and sell your new replacement property right away and reap the sales proceeds. The IRS would see this and invalidate your exchange.

As a general guideline, you want to hold onto your new replacement property for at least 2 years after your transaction before selling or exchanging again.

Save Money on Taxes

If you’re looking to save money on taxes when selling real estate, a 1031 exchange may be just the ticket! When you exchange property under section 1031, you can defer your capital gains taxes as long as you move your sales proceeds into a like-kind replacement property. A qualified intermediary can help you through each and every stage of the 1031 exchange process. Contact our intermediaries today to get a better sense of our services and how we can help you save money on taxes when selling real estate!

  • 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

 

Is a 1031 Exchange Partial Cash Out Beneficial?

Partial Cash Out 1031 Exchange

With the current strength of the real estate market, many real estate investors face steep capital gains taxes when selling property. That makes 1031 exchanges very attractive as they allow a taxpayer to defer those capital gains taxes so long as you move all of your proceeds into a new property. But some taxpayers may want to pocket some of those net proceeds in addition to deferring their taxes. Is it possible to have the best of both worlds? In this article, we are going to talk about whether or not it’s beneficial to do a partial cash-out on your 1031 exchange.

Cash Boot

The short answer is, yes – it is possible to do a partial 1031 exchange and pocket some of the sales proceeds. But remember, any cash that you receive during the 1031 exchange process is considered boot and is subject to capital gains taxes. The amount of cash boot you receive and whether or not it will still be beneficial to conduct an exchange depends on your specific property and situation. It’s important to consult with your tax advisor before making a decision.

Real Estate Exchanges in MN

Real estate exchanges are great for individual taxpayers (because they allow you to defer capital gains taxes), as well as the economy as a whole. Any US taxpayer can avail themselves of the benefits of section 1031, so it’s always worth considering when you’re looking to sell real estate. With twenty years of experience, our team has the skills needed to accomplish the goals of your 1031 exchange. Contact our qualified intermediaries today to learn more about our services and to set up a time about your 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange Tips for Accountants

1031 Exchange Tips for Accountants

Many accountants and CPAs work with clients who are interested in 1031 exchanges. In this article, we are going to offer up a few 1031 exchange tips for accountants to help their clients when considering like-kind exchanges.

The Complexities of a 1031 Exchange

Most accountants and CPAs are not experts in the realm of 1031 exchanges. Like-kind exchanges, though they may seem simple, can be incredibly complex as there are a litany of rules and regulations you need to abide by. Many CPAs have a basic understanding of how 1031 exchanges work and can explain the benefits to their clients, but they can’t execute a 1031 exchange on behalf of their clients. That’s where a qualified intermediary becomes invaluable.

Partner with a Qualified Intermediary

If you are an accountant or CPA and your client is asking about doing a 1031 exchange, it’s important to refer them to a qualified intermediary who understands the ins and outs of the 1031 exchange process. We partner with many accountants and CPAs to offer 1031 exchange help to their clients as needed.

Commercial Partners in Minneapolis

At Commercial Partners Exchange Company, our like-kind exchange professionals make it a point to give every 1031 exchange the attention it deserves. No matter what type of property you’re looking to exchange, we can advise you throughout the process so you feel comfortable and informed. Give us a call today to learn more about the like-kind exchange process and to get your exchange up and running. Our main office is located in downtown Minneapolis, but we work with clients throughout 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved