A 1031 exchange is a versatile tool used by many tax-savvy investors, but a lot of people aren’t aware of the true extent to which a 1031 exchange can be used as an investment strategy. In this article, we are going to talk about why the 1031 exchange is such a powerful tax-saving tool.
Tax Deferral
Of course, the first thing most people know about 1031 exchanges is that they allow you to defer your capital gains taxes on the sale of like-kind investment real estate. This allows your money to continue compounding and building over time in a continued investment.
Additional Benefits Beyond Tax Deferral
1031 exchanges also offer some additional benefits beyond deferring taxes. From a broader view, they help stimulate the economy by moving capital around to different geographic areas and industry segments. A like-kind exchange can also act as an opportunity to get out of a management-intensive property (such as a rental property) and into a more hands-off property (such as a DST).
Section 1031 is a Powerful Tax Provision
A 1031 exchange can help you defer capital gains taxes when you sell like-kind investment real estate. Section 1031 has been a part of the tax code in some form for over 100 years. This powerful tax provision has been used by countless investors over the decades to defer capital gains taxes and compound wealth over time in a continued investment. The best part is that the 1031 exchange can be utilized by any US taxpayer! Investors large and small can defer capital gains taxes under section 1031. Contact CPEC1031, LLC today to learn more about the 1031 process and see if you are a good candidate for 1031 exchange treatment!
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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