One of the greatest benefits of doing a 1031 exchange of your investment or business real estate is that it allows you to compound your wealth. But how exactly does a 1031 exchange help you build wealth over the long run? In this article, we are going to talk about how a 1031 exchange can help you build your wealth over time through continued real estate investment.
Continuing Your Investment With a 1031 Exchange
The underlying ethos of a 1031 exchange is that it is a continuation of your existing investment. When you sell a piece of investment property, you can either pocket the sales proceeds and pay capital gains taxes, or you can reinvest those proceeds into a replacement property and defer your capital gains tax burden in the process. Not only does a like-kind exchange give you the gift of tax deferral (allowing you to defer a potentially large tax bill upon the sale of your property), it also keeps your hard-earned money working hard for you in a bigger and better replacement property.
Get Your Like-Kind Exchange Started
Get your like-kind exchange started by contact a qualified intermediary at CPEC1031, LLC today! Our team has decades of experience working with clients across the United States on forward, reverse, and construction exchanges under section 1031 of the Internal Revenue Code. We can work with you through the entire 1031 process and ensure you are well equipped for the closing table and that you meet all your 1031 exchange deadlines and requirements. Contact us at our Twin Cities office located in downtown Minneapolis to get started.
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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