Many people have heard of 1031 exchanges but assume that they are only for the big time real estate investors. Not true! Section 1031 of the Internal Revenue Code applies to all United States taxpayers. In this article, we are going to talk about how a 1031 exchange can benefit both big and small investors alike!
How to Utilize Section 1031
Section 1031 of the IRC provides U.S. taxpayers the opportunity to defer their capital gains taxes when selling investment real estate. In order to do so, you must take all of your sales proceeds and reinvest them into a new replacement property of equal or greater equity, value, and debt. It’s important to note that the benefits of section 1031 only apply to real estate that’s used for investment or business purposes. Personal property is excluded from 1031 treatment.
When done correctly, you will be able to avoid a huge tax windfall and instead put that money to use in a continued investment.
Section 1031 is Available to All Taxpayers!
Section 1031 of the Internal Revenue Code is available to all taxpayers! You don’t have to be a big time real estate investor to avail yourself of the benefits of a 1031 exchange. Our qualified intermediaries can walk you through every step of the exchange process and make sure you have all your bases covered when it comes time to close on your property. Contact us today to learn more about our 1031 exchange services and to see if you are a good candidate for like-kind 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.
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