Section 1031 of the Internal Revenue Code is available to all US taxpayers and can be a crucial tool to help individual businesses and the national economy during the ongoing COVID-19 pandemic. Here are a few ways in which 1031 exchanges are economically beneficial in the midst of a pandemic.
Section 1031 incentivizes businesses to diversify, consolidate, move into more productive property, or relocate to a different location.
1031 exchanges allow small business owners to move into more efficient facilities that meet their needs, rather than being stuck with an inefficient property.
Like-kind exchanges are often used in conservation easements to reduce erosion, improve water quality, and sustain wildlife and wetlands.
Farmers utilize 1031 exchanges to improve their operations, consolidate, or relocate while keeping their cash flow intact.
1031 exchanges improve communities by encouraging investment for the best use of real estate, and in the process, increase state and local tax bases.
Like-kind exchanges can aid in the repurposing of office and retail spaces, allowing efficient flow of capital to where it’s most needed.
1031 exchanges create jobs and taxable revenue for adjacent industries such as realtors, title insurers, escrow agents, lenders, surveyors, contractors, inspectors, attorneys, and more.
1031 Exchange Professionals
At CPEC1031, we help clients throughout the United States defer capital gains taxes through the use of the 1031 exchange. We have over twenty years of experience in the 1031 exchange industry and can help you through your exchange – no matter how complex. Contact us today to learn more about the extent of our services or to get started with your next 1031 exchange of real estate. You can reach us at our primary offices located in downtown Minneapolis or at one of our satellite offices around the United States.
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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