You should consider a 1031 exchange whenever you have gains that you don’t want to recognize. Section 1031 allows you to defer the recognition of your gain indefinitely by redeploying that cash into another real property investment.
Wouldn’t it be nice if you could go through life deferring, deferring, deferring and never unnecessarily recognizing gains? Wouldn’t it be nice to use that money that would have otherwise gone to the government to compound and build your wealth?
There are many provisions in the tax code that encourage people to invest in real estate. One of the most important is section 1031 because it allows you to keep this cash that would have otherwise gone out the door in taxes and redeploy that cash into your next investment and build more wealth over time. That benefits not only you, but the entire United States economy, by creating higher values. It also gives you an incentive to get back on the treadmill, reinvest, and lever up into bigger and better properties every time you sell a relinquished property.
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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