The 1031 Exchange Exit Plan for Underperforming Property

Are you holding an underperforming property because you are afraid of the potential tax bill that would come with a sale? A 1031 exchange may give you another exit path.

The Tax-Saving Benefits of Section 1031

Section 1031 of the Internal Revenue Code offers excellent tax-saving benefits for owners of investment or business property. If you sell your investment property and reinvest the sales proceeds into a replacement property (rather than pocketing the net proceeds), you can defer your capital gains tax burden on the sale of that property.

Many investors utilize this 1031 exchange strategy when they are holding onto an underperforming property that they want to get out of. Rather than selling the property in an outright sale (and recognizing the taxable gains that come with such a sale), why not exchange your property for a replacement property of equal or greater value, equity, and debt and defer your capital gains taxes in the process?

For many investors, this is a no-brainer.

1031 Exchange Your Investment Property

1031 exchange your investment property and defer your capital gains tax burden. Section 1031 of the Internal Revenue Code can be utilized by all US taxpayers, from big time investors, to small mom-and-pop shops. Contact CPEC1031, LLC today to talk through the details of your next 1031 exchange. We can answer any questions you have, prepare your documents, and help you navigate the like-kind exchange process from the sale of your relinquished property to the closing of your replacement property. Our team has over 20 years of experience in the 1031 exchange industry. Let us help you through 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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