A 1031 exchange provides many benefits to real estate investors at the time of their exchange and well into the future. In this article, we discuss how a 1031 exchange is the gift that keeps on giving.
How a 1031 Exchange Works
A 1031 exchange is a powerful tax-saving tool in the United States tax code. It allows you to defer capital gains taxes when selling investment or business real estate. In order to get the benefit of tax deferral, you can’t pocket any of the sales proceeds. Instead, you must reinvest those proceeds into a like-kind property of equal or greater value, equity, and debt.
Continue Your Investment Far Into the Future
While a 1031 exchange does not fully erase your capital gains tax burden, it does defer those taxes until you sell your property in a straight forward sale. However, you can continue to defer those taxes is you continue to sell your properties in subsequent 1031 exchange transactions. This allows you to reap the benefits of the 1031 exchange far into the future and set yourself and your heirs up for success.
Find a 1031 Intermediary Near You
Find a 1031 exchange qualified intermediary near you by contacting CPEC1031, LLC. With more than two decades of experience, our team of skilled intermediaries have the localized knowledge to make sure your 1031 exchange is successful, no matter where your property is located. Reach out to our team of like-kind exchange professionals today to learn more about the 1031 exchange process and see if your property is a good fit for 1031 exchange treatment. You can find us at our downtown Minneapolis office and set up a time to chat with one of our experienced qualified intermediaries today.
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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