A lot of clients come to us wanting to do a 1031 exchange of real estate, but think they can’t because they are not big-time investors. In this article, we are going to talk about why 1031 exchanges are not only for big time investors.
Who can Do a 1031 Exchange?
Any United States taxpayer can avail themselves of the tax-deferral benefits of a 1031 exchange of real estate. You do not need to be a big shot investor to conduct a 1031 exchange and defer your capital gains taxes. All you need is to have a like-kind property that you hold for a qualifying purpose (for investment or business purposes). When you go to sell that property, instead of cashing out, you need to reinvest your sales proceeds into a bigger, better replacement property. The end result is that your money continues to work for you in a new investment property, and you get to avoid a big tax bill.
1031 exchanges can be conducted across state lines and between different segments of the real estate market. So even if you’re not a hot shot investor, you can still use section 1031 to your advantage the next time you are considering selling real property.
A 1031 Exchange can Help You
With a 1031 exchange of real estate, you can defer your capital gains taxes that would otherwise go to the government and keep that money working for you in a continued investment. A qualified intermediary can walk you through this process step by step and make sure you are hitting all required benchmarks along the way. Give us a call today to learn more about our services and how we can help you save money on your next real estate sale. Our office is located in downtown Minneapolis but we work with taxpayers throughout 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.
© 2020 Copyright Jeffrey R. Peterson All Rights Reserved