There are many reasons why you might benefit from doing a like-kind exchange, rather than selling your real property. In this article, we are going to discuss the benefits of doing a 1031 exchange of real estate.
Defer Your Capital Gains Tax
The largest immediate benefit to the taxpayer is that a 1031 exchange allows you to defer your capital gains on the sale of real estate. Typically, when you sell real estate, you are hit with a capital gains tax liability. A 1031 exchange encourages people to reinvest their proceeds by allowing them to defer those capital gains taxes as long as they move their net proceeds into a new replacement property.
Put Your Money to Work
A 1031 exchange also allows you to put your money to work, so to speak. Rather than writing a check to the government for those capital gains taxes, you can re-invest in a bigger, better property and keep that money compounding and building wealth over time.
Diversify Your Portfolio
Finally, a 1031 exchange is a great way of diversifying your real estate portfolio. With a like-kind real estate exchange, you can exchange out of and into different business segments as needed.
Qualified Intermediary Company in Minnesota
1031 exchanges can save you a lot of money in capital gains taxes when you sell real estate. At CPEC1031, LLC, we provide qualified intermediary services to clients in Minnesota and throughout the United States. Our qualified intermediaries have twenty years of experience facilitating like-kind exchanges, and have the skills necessary to ensure your exchange is successful. We can answer all of your questions, prepare your 1031 documents for closing, and advise you throughout the process. Contact us today to see if your property qualifies for a 1031 exchange.
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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