Swapping land in a 1031 exchange can lead to big payoffs down the line. In this article, we are going to talk about how 1031 exchange land swaps can result in big results over the long-term.
Recapping the Benefits of Land Exchanges
Section 1031 of the Internal Revenue Code offers all taxpayers the opportunity of deferring their capital gains taxes when they sell real estate so long as they meet certain guidelines. First, the exchanged land must be held for investment or business purposes (not for personal use). Second, the exchange must be completed within 180 days and abide by other strict timeframes. These are just a couple of many rules that must be satisfied in a 1031 exchange. When done correctly, the taxpayer doing the exchange is able to avoid a big tax bill on the sale of their property.
Over the long-term, the taxpayer can watch their investment grow in their replacement property. If and when you want to sell that replacement property, you can consider doing another 1031 exchange to keep the investment ball rolling!
Minnesota 1031 Exchange Professionals
The qualified intermediaries at Commercial Partners Exchange Company have over two decades of experience working on 1031 exchanges. A 1031 exchange accommodator can help you through every stage of your 1031 exchange from start to finish. Specifically, our intermediaries can prepare all of your documentation, advise you on what replacement properties to purchase, and answer all of your questions along the way. Contact us today to get started with your 1031 exchange of real estate. Our primary office is located in the heart of downtown Minneapolis but we work with clients all over the state of Minnesota, as well as throughout the United States.
- 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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