For people that have investment real estate that they’d like to sell, a 1031 exchange can be a very valuable tax strategy. Here’s why.
How it Works
Here’s how it works – you sell investment real property. You dispose of each of those properties as part of a 1031 exchange and line up new acquisitions – new properties that are like-kind within the 45 day or 180 day exchange period.
The idea is that every disposition of a piece of real estate is a 1031 relinquished property and that gets matched up with every acquisition of a replacement property.
The Benefits
The benefits are that you get to keep the time value of that money that would otherwise go out the door in unnecessary taxes and keep that capital working in your business so that you can expand and grow your business.
So delay the recognition of gains as much as possible by incorporating a program or plan that every disposition is a tax-deferred 1031 sale, and every acquisition is the completion of a 1031 exchange. By doing this, owners of investment real estate can maximize the tax efficiency of their operation and have more money to expand and grow their business.
1031 Exchanges in Minnesota
If you are looking to do a 1031 exchange of your property in Minnesota or another state, you’ve come to the right place. CPEC1031 LLC has two decades of experience facilitating exchanges under section 1031 across the United States. We can guide you through the process and answer all of your questions. Contact us today to learn more about our services and how we can help!
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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