Many people have heard of 1031 exchanges but aren’t sure why they should consider doing one. In this article, we’re going to talk about why it may be a good idea for you to 1031 exchange your property.
A 1031 exchange offers you a potentially huge tax deferral. In a typical 1031 exchange (assuming you meet all the requirements) you are able to defer all of your capital gains taxes on the sale of your property so long as you roll those sales proceeds into a replacement property of equal or greater value. This is a great way to avoid a potentially big tax windfall.
Another benefit is that you get to keep your hard-earned money working for you. Instead of writing a check to the government for your capital gains taxes, you get to keep that money compounding and building in your replacement property. In a sense, your money keeps working for you over time, rather than going to a tax payment.
Minneapolis Qualified Intermediary Company
At Commercial Partners Exchange Company, we help investors defer capital gains tax on the sale of real property under section 1031 of the Internal Revenue Code. We have over two decades of experience facilitating real estate exchanges of all shapes and sizes. If you are interested in learning more about the tax-deferral benefits of a 1031 exchange of real estate, contact us today at our downtown Minneapolis office and speak with one of our qualified intermediaries about your exchange.
- 1031 Hotline: 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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