A 1031 exchange must be conducted with like-kind property. The good news is that “like-kind” is defined very broadly in the realm of 1031 exchanges. This means you have a lot of different options when choosing replacement property during your exchange. In this article, we are going to explain how a 1031 exchange gives you a plethora of options when it comes to real property.
Consider Your 1031 Replacement Property Options
When you sell a piece of like-kind real estate in a 1031 exchange, you don’t need to buy the exact same type of real estate as your replacement property, it just needs to be “like-kind” property. For example, if you are selling a management-intensive rental property, you don’t need to reinvest in another rental property. Instead, you can exchange into more passive real estate and still defer your capital gains taxes. This is a popular option for investors who are getting on in years and are approaching retirement. These savvy investors use 1031 exchanges as a part of their long-term retirement and estate planning strategy.
Let’s Talk About Your 1031 Exchange
At CPEC1031, LLC we focus exclusively on 1031 exchange transactions. Our qualified intermediaries are here to help you through all the ins and outs of the like-kind exchange process. We can help answer your questions, prepare your documents, and make sure you are set up to defer 100% of your capital gains tax burden when selling investment or business real estate. Contact us today at our Twin Cities office location in downtown Minneapolis to set up a time to chat with one of our intermediaries about your next 1031 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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