Many taxpayers have questions about what types of property they can and cannot use in a 1031 exchange. In this article, we are going to talk about 1031 exchanging between different industry sectors (rental, retail, agricultural, and beyond!)
1031 Exchanges Between Industry Sectors
One of the greatest benefits of doing a 1031 exchange is that you can exchange out of and into different industry sectors. For example, you can sell a rental property like a duplex and use your sales proceeds to purchase a retail space as your replacement property. So long as your property is like-kind, you can exchange between any industry sector that you wish.
Qualifying Property
It’s important to remember that your property, regardless of what industry sector it’s in, still needs to satisfy the 1031 exchange property requirements. Specifically, it needs to be like-kind and held for investment purposes or for use in your trade of business. Make sure you are meeting these requirements before you dive into your 1031 exchange.
Like-Kind Exchanges in Minneapolis
If you are interested in saving money in capital gains taxes when you sell investment real estate, a like-kind exchange may be a great option for you. CPEC1031, LLC can help you navigate the waters of your 1031 exchange, making sure you have a good grasp of the ins and outs along the way. We can help you achieve the capital gains tax deferral you’re looking for. Contact us today at our downtown Minneapolis office for more information about our services and how we can help you through the details of your next 1031 exchange of 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.
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