taxes

Are You Missing Out on a Tax-Saving Real Estate Strategy?

Tax-Saving Real Estate Strategy

Selling a piece of real estate is often a daunting task – with a lot of variables to consider throughout the process. But a lot of taxpayers aren’t aware of the full range of options available to them when it comes to selling real estate. In this article, we are going to talk about some tax-saving real estate strategies – specifically the 1031 exchange – that you can use to your benefit when selling real property.

Selling vs. Exchanging

The most obvious way to sell real estate is to engage in a straight-forward sale. In this situation, the owner sells the property and receives the net proceeds from the sale. What many taxpayers don’t consider is the potential capital gains tax bill from such a sale. Those sales proceeds do not all go into your pocket – you have to pay potentially hefty capital gains taxes on them. This can result in an unexpected tax bill, and even dissuade some taxpayers from selling.

If that sounds like you, a 1031 exchange may be right up your alley! With a 1031 exchange, you get to defer your capital gains taxes on the sale of real estate. The catch is that you have to reinvest those net proceeds into a replacement property. The benefit is that you get to defer a potentially huge capital gains tax bill.

Save on Taxes with a 1031 Exchange!

Selling a piece of investment real estate in the near future? Consider the tax-saving benefits of a 1031 exchange! The qualified intermediaries at Commercial Partners Exchange Company can help you through all the details of your 1031 exchange. Contact us today to learn more about the 1031 exchange process and how we can help you save tax dollars on your next real estate sale! Our primary office is located in downtown Minneapolis, but we work with clients across 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

A Few Tips to Cut Your Capital Gains Tax Burden when Selling Real Estate

Capital Gains Tax Burden

Capital gains taxes are at the top of mind for many real estate investors. In this article, we are going to offer up a few tips for cutting your capital gains tax burden when selling real estate.

Qualified Opportunity Funds

Qualified opportunity funds are a new method for deferring capital gains taxes. When selling a piece of real estate, you can move your sales proceeds into a qualified opportunity fund and defer your capital gains tax burden. However, be aware that these capital gains taxes will come due come December 26, 2026.

1031 Exchanges

1031 exchanges are perhaps the best tool for reducing your capital gains taxes when selling a piece of investment real estate. By setting your transaction up as a 1031 exchange, you can defer your capital gains taxes on the sale and reinvest those proceeds into a bigger, better replacement property. The benefits are numerous – you get to avoid a tax windfall and keep your money working for you in a continued investment.

Reduce Your Capital Gains Tax Burden with a 1031 Exchange

Commercial Partners Exchange Company works with investors large and small on their like-kind exchanges of real property. With twenty years of experience working in the 1031 exchange industry, we have the skills needed to assist you in your real estate transaction. Reach out to our 1031 exchange professionals today at our offices in downtown Minneapolis. Let us help you through the complex 1031 exchange process so you can save on capital gains taxes when you sell real estate!

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

 

Rethink Your Tax Considerations for Retirement Planning

Tax Considerations 1031 Exchange

There’s a lot to consider when planning for retirement. One useful retirement planning tool that many people don’t even think of is the 1031 exchange. In this article, we’re going to talk about how to rethink your tax considerations when planning for retirement.

Tax Considerations

One of the biggest factors involved in retirement planning is taxes. You want to prepare yourself for retirement in the most tax-advantageous way possible. There are a lot of strategies that should be discussed with your financial planner, CPA, or tax advisor.

Consider How a 1031 Exchange Might Fit Into Your Retirement Plan

A 1031 exchange can be a great retirement planning tool. If you currently own a management-intensive property that you don’t want to deal with in retirement, a 1031 exchange allows you to sell that property and acquire another one while deferring your capital gains taxes. As a result, you can exchange your management-intensive property for a property that provides more hassle-free passive income.

Set up Your Like-Kind Exchange

Engaging in a 1031 exchange, rather than an outright sale, of your real estate can help you avoid a huge capital gains tax windfall. While every taxpayer can avail themselves of the tax-saving benefits of a 1031 exchange, the exchange process is complicated and requires the help of a pro. That’s where the qualified intermediaries at Commercial Partners Exchange Company come in. We have more than two decades of experience facilitating 1031 transactions for clients in Minnesota and across the United States. Contact us today for help setting up your like-kind 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

How Long Should You Keep Your Tax Records for 1031 Exchange Purposes?

1031 Exchange Tax Documents

Many taxpayers wonder how long they should hold onto their tax records. A couple years? 10 years? Forever? In this article, we’re going to talk about how long to keep your tax records, specifically when it comes to 1031 exchanges of real estate.

The Safe Answer

There really isn’t a hard and fast rule about how long you should keep your tax forms. But the safest answer to the question posed above is forever. If you always have your tax forms on hand, you’ll always have them if a need arises. With the ubiquity of cloud storage services available, keeping these files stored digitally has never been easier.

1031 Exchange Documents

Keeping your tax documents on hand is especially important when it comes to 1031 exchanges. You want to be able to prove to the IRS that your exchange is legitimate at all times. If the IRS performs an audit a decade from now and they start asking questions about an exchange you did twenty years ago, you want to be sure that you have the required documents on file to back up your exchange.

1031 Exchange Your Property!

If you’re thinking about doing a 1031 exchange on your property, you’ve come to the right place! At Commercial Partners Exchange Company, we help taxpayers large and small with their like-kind exchanges of real estate. Our team has two decades of experience that we put to work on every exchange we facilitate. Reach out to us at our downtown Minneapolis office today to learn more about the 1031 exchange process and get started with your real estate 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

 

1031 Exchanges & Tax Audits

1031 Exchange Tax Audit

1031 exchanges are closely examined in any tax audit because they are used by many investors – but a lot of people don’t follow the required rules for an exchange. In this article, we are going to talk about a few tips for dealing with 1031 exchanges when you’re being audited.

Technical Requirements

When looking at a 1031 exchange transaction, the most common red flag for an auditor is the failure to meet the technical requirements of a 1031 exchange. These include the 180 day / 45 day time periods, the like-kind property requirement, and the napkin test – to name just a few. Make sure you’re abiding by all of these technical requirements when conducting your exchange.

Maintain Your Records

The best thing you can do to protect yourself in the event of an audit is to maintain thorough and accurate records of your 1031 exchange transactions. That way you will have all the information needed when your auditor requests it. You should also consult with a 1031 exchange professional before conducting an exchange. A 1031 intermediary can explain the details of the 1031 process and provide you with good advice so your exchange does violate the rules.

Exchange Your Like-Kind Property

The team of qualified intermediaries at Commercial Partners Exchange Company have two decades of experience facilitating exchanges of like-kind property. Our team can help you identify replacement properties, prepare all your documents, and answer all of your questions throughout the process. Contact us to learn more about the 1031 exchange process and to get your exchange off the ground today. Our offices are located in downtown Minneapolis, but we work with clients throughout the state – as well as around the country.

  • 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved