There are several types of 1031 exchanges – forward exchanges, reverse exchanges, build-to-suit exchanges, etc. Each type has its own benefits. In this article, we discuss some of the numerous benefits of a reverse 1031 exchange of real estate.
Locking Down Replacement Property
A reverse 1031 exchange allows you to nail down a replacement property before you offload your relinquished property. In a hot seller’s market, this can be invaluable as it let’s you lock in a sure-thing so you’re not struggling to find replacement property after starting your 1031 exchange.
Capital Gains Tax Deferral
As with any type of 1031 exchange, a reverse exchange offers the benefit of capital gains tax deferral. This is the primary reason most taxpayers conduct 1031 exchanges and it’s easy to see why. Capital gains taxes can be a big downside of selling investment real estate. Deferring those taxes in a 1031 exchange is a much more attractive option for many investors.
Find a Qualified Intermediary for Your 1031 Transaction
If you’re looking for a qualified intermediary for your next 1031 transaction, look no further than CPEC1031, LLC. Our team consists of 1031 exchange intermediaries with decades of experience facilitating like-kind exchanges under section 1031 of the Internal Revenue Code. We have the skills needed to bring your exchange to a successful close. No matter what type of exchange you are conducting (forward, reverse, or build-to-suit) you can rest assured that our intermediaries have your best interests in mind. Contact us today at our Twin Cities office to set up a time to chat 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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