Does the New Tax Plan Allow Reverse 1031 Exchanges?

 Reverse 1031 Exchange

1031 exchange investors have been asking a lot of questions about the new tax overhaul that went into effect earlier this month. We’re here to answer any questions you may have! One query that we’ve been hearing a lot is whether or not reverse exchanges are still allowed under the new law. In this article, we’re going to talk about whether or not reverse 1031 exchanges are allowed under the new tax law.

Reverse 1031 Exchanges of Real Estate

The new tax law preserves 1031 real estate exchanges. That means forward exchanges, reverse exchanges, build-to-suit exchanges of real estate are still viable. If you are looking to do a real estate exchange and you find a perfect replacement property before selling your relinquished property – a reverse exchange can help you defer your capital gains taxes.

Reverse Personal Property Exchanges

The same is not true of personal property exchanges. Under the new tax law, personal property exchanges are no longer valid. That means reverse exchanges involving personal property are not allowed moving forward.

1031 Reverse Exchange Company in St. Paul, MN

The team of 1031 professionals at Commercial Partners Exchange Company has been helping taxpayers and investors with their like kind exchanges for decades. We have the knowledge and experience needed to guide you through the 1031 exchange process, prepare the necessary documents for your exchange, and answer all of your questions along the way. If you are interested in learning more about the tax-saving benefits of the like-kind exchange, don’t hesitate to reach out to us at our downtown Minneapolis office.

  • 1031 Hotline: If you have questions about 1031 reverse exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

 

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