While section 1031 is available for use by any United States taxpayer, there are some rules and guidelines in place that govern how 1031 exchanges are conducted. In this article, we are going to talk about what types of entities can conduct 1031 exchanges and how it can be beneficial from a tax perspective.
1031 Exchanges Involving Individual Taxpayers
1031 exchanges are often conducted by individual taxpayers who own investment property (such as a duplex, retail space, farmland, etc.) We work with a lot of individual taxpayers who want to defer taxes when selling their investment property by reinvesting into like-kind replacement property.
1031 Exchanges Involving Other Entities
While 1031 exchanges are often conducted by individual taxpayers, there are many types of entities that can utilize section 1031 for tax deferral. Trusts, LLCs, and corporations can also exchange property under section 1031 of the Internal Revenue Code. The 1031 exchange is a powerful tax-saving tool for business owners and investors alike.
Defer Your Taxes with a Like-Kind Exchange of Real Estate
Defer your capital gains taxes with a like-kind exchange of investment real estate. Section 1031 of the Internal Revenue Code was created to incentivize reinvestment and stimulate the economy. The best part is it’s available for all United States taxpayers to utilize! If you own investment or business property and you’re looking to sell, consider a 1031 exchange to defer your capital gains taxes on the sale. Reach out to the qualified intermediaries at CPEC1031, LLC to learn more about the like-kind exchange process and see how our team can help you through the details of your next 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.
© 2025 Copyright Jeffrey R. Peterson All Rights Reserved