When you’re looking to sell a piece of property, you have several options. You could sell the property in a traditional sale and pay any necessary taxes. Or you could defer those taxes by utilizing a 1031 exchange. In this article, we are going to explain why a 1031 exchange of investment real estate might be the right option for your property.
Why is a 1031 Tax Exchange Good For You?
The key benefit is that your capital gains tax liability that would otherwise become due is deferred under Section 1031 of the code. The main value to investors is that as long as your money continues to be re-invested (over and over again) in other qualifying like-kind property, your portfolio can continue to grow in value (without taxation). You can use the money that would otherwise go to the government in taxes to buy more replacement property, allowing you to buy more and bigger properties. Over time this tax-free compounding has a tremendous wealth building power
Get Your 1031 Exchange Started
Get your 1031 exchange started today by contacting the qualified intermediaries at CPEC1031, LLC. Our team of intermediaries has been facilitating 1031 exchanges for more than twenty years. We have the experience needed to ensure your 1031 exchange is a success. Reach out to us today to discuss your 1031 exchange of investment real estate. We can answer your questions and prepare all of your documentation prior to closing. Contact us today at our Minneapolis offices to learn more about the process 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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