There are many benefits of conducting a 1031 exchange. Today, we’d like to talk specifically about how a 1031 exchange is useful from a tax perspective. In this article, we are going to discuss the numerous tax advantages of conducting a 1031 exchange of real estate.
Defer Your Capital Gains Taxes
The 1031 exchange was built on the idea of deferring capital gains taxes when selling property. In 2020, taxpayers are able to defer 100% of their capital gains tax when selling real estate, as long as they meet all the requirements set out in section 1031 of the Internal Revenue Code. Depending on the property involved, this can add up to a huge tax savings.
Keep Your Money Working
Ultimately, deferring your capital gains taxes means that you get to keep your money working hard for you over time. Instead of giving that money to the government, you can reinvest it into a replacement property and continue compounding interest over time. The economy at large benefits too, as 1031 exchanges encourage investment in the real estate market.
Thinking of Doing a 1031 Exchange? Act Now!
At CPEC1031, we have over two decades of experience in the 1031 exchange industry. Our qualified intermediaries can guide you through the entire like-kind exchange process and advise you every step of the way. Contact us today to learn more about the 1031 exchange services we offer and how we can help you with your next like-kind exchange. Find us at our downtown Minneapolis office, or at one of our numerous satellite offices 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.
© 2020 Copyright Jeffrey R. Peterson All Rights Reserved