Before you conduct a 1031 exchange, you need to make sure that your property falls within the IRS strike zone for qualified property. In this article, we are going to talk about the 1031 exchange strike zone and whether your property falls within it.
Property Within the Strike Zone
The 1031 exchange strike zone is a set of criteria that govern what exactly qualifies for 1031 exchange treatment. Here are a few types of property that fall within the strike zone:
Like-kind real estate that is held primarily for investment or business purposes.
Property Outside the Strike Zone
Here are some examples of property that exist outside the 1031 exchange strike zone:
Real property used primarily for personal purposes – such as your primary residence or lake cabin. These are for personal use, not investment or business purposes.
Personal property such as artwork, aircraft, and more are no longer considered eligible for 1031 exchange treatment.
Property held primarily for resale – including flipped houses.
Defer Taxes with a 1031 Exchange
CPEC1031, LLC has been helping taxpayers defer their capital gains taxes when selling real estate for more than twenty years. Our intermediaries have the skills and experience to facilitate your exchange from start to finish. We will advise you, answer your questions, and prepare your required documents for closing. Contact our office today in downtown Minneapolis to chat with one of our intermediaries about your exchange. With a 1031 exchange, you can defer your taxes and keep that money working for you in a continued investment!
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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