Don’t Miss an Opportunity to Defer Your Taxes When Selling Investment Real Estate

When you’re thinking about selling real estate, there are multiple options to choose from. You can sell your property in a straight-forward sale, pocket the net proceeds, and pay the required capital gains taxes on the sale. Or you can exchange your property in a 1031 transaction, reinvest your net proceeds into a new replacement property, and defer your capital gains tax burden. Section 1031 of the Internal Revenue Code offers a huge opportunity for investors large and small to defer their taxes and keep their money compounding into the future.

Are You Eligible for 1031 Exchange?

Some people may not think they are eligible to conduct a 1031 exchange. The good news is that section 1031 is available to all United States taxpayers. You just need to make sure that your property qualifies for 1031 exchange treatment. 1031 exchanges can only be done with like-kind real property. Personal property is not allowed. Additionally, the real property must be held for investment purposes or for use in your trade.

1031 Exchanges of Real Estate Have Many Benefits

There are numerous benefits to conducting a real estate 1031 exchange. The most obvious benefit is that a 1031 exchange allows you to defer your capital gains taxes on the sale of qualifying real estate so long as you move your sales proceeds into a replacement property of equal or great value, equity, and debt. There are a variety of rules and regulations that need to be followed in order to complete a successful 1031 exchange of real estate. A qualified intermediary can help you navigate the process and answer any questions you might have.

• 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.

© 2024 Copyright Jeffrey R. Peterson All Rights Reserved

What is the Distinction Between an Asset Sale & Stock Sale in Relation to a 1031 Exchange?

In a 1031 exchange, one can exchange an interest in real property held for business or investment purposes. Depending on how the sale is structured, it may be classified as an asset sale, which could qualify for tax deferral under Section 1031 of the Internal Revenue Code.

An asset sale involves disposing of various property components or assets of a business, which can be categorized as:

• Real Property Assets, such as land, buildings, and permanent fixtures eligible for tax deferral under Section 1031.

• Non-Section 1031 Chattel Property, including movable objects, equipment, intangible assets, and goodwill that do not qualify for tax deferral.

• Inventory, which refers to goods held for sale and are not eligible for tax deferral under Section 1031.

On the other hand, a stock sale is the sale of an entity, such as the owner's membership interest in an LLC, partnership interest, or shares of stock in a corporation. These interests are typically excluded from tax deferral under Section 1031, according to Treasury regulation § 1.1031(a)-3.

1031 Exchanges Made Easy

At CPEC1031, LLC we make 1031 exchanges easy by walking you through the process from start to finish. For over twenty years, our qualified intermediaries have been facilitating like-kind exchanges of real estate for clients throughout the United States. We are ready and waiting to assist you through the ins and outs of your next 1031 exchange of real estate. Contact our like-kind exchange team of professionals today to get help with your next 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.

© 2024 Copyright Jeffrey R. Peterson All Rights Reserved

Can Anyone Do a Reverse 1031 Exchange?

Many real estate investors are aware of reverse 1031 exchanges, but may not know if they’re eligible for one. In this article, we’re going to discuss whether anyone can do a reverse 1031 exchange and when someone might find it beneficial.

Reverse 1031 Exchanges

As with all types of 1031 exchanges, reverse exchanges under section 1031 of the Internal Revenue Code are available to any US taxpayer. As long as you own qualifying investment real estate in the United States, you can conduct a reverse like-kind exchange.

When to Consider a Reverse Exchange

Now that you know reverse exchanges are available to all US taxpayers, the next thing to think about is when to consider a reverse exchange. Reverse exchanges are a particularly helpful tool in hot real estate markets when it may be difficult to find an ideal replacement property within the 180 day like-kind exchange time period. With a reverse exchange, you can lock up your replacement property first, and then sell your relinquished property after the fact (while still completing everything within 180 days).

Does Your Property Qualify for 1031 Exchange?

If you own real estate that you’re holding for investment purposes or for use in your trade or business, then you are eligible to defer your capital gains taxes via a 1031 exchange. At CPEC1031, LLC we are your one-stop-shop for 1031 exchange resources. Our qualified intermediaries can walk you through every step of your 1031 exchange – making sure you are fully informed and prepared at all times. We’ve been helping taxpayers in the 1031 exchange industry for more than twenty years. Give us a call today to learn more about the 1031 exchange 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.

© 2024 Copyright Jeffrey R. Peterson All Rights Reserved

What Do Beginner’s Need to Know About the 1031 Exchange Process?

The 1031 exchange process can be overwhelming for those who have never been through it before. Arming yourself with a little bit of knowledge about the process can put your mind at ease. In this article, we are going to talk about what beginner’s need to know about the 1031 exchange process.

The Basics of Like-Kind Exchanges

First, let’s talk briefly about the basics of like-kind exchanges under section 1031 of the Internal Revenue Code. In essence, a 1031 exchange is an alternative to an outright sale of real estate, wherein you reinvest your sales proceeds into a like-kind replacement property. Doing so allows you to continue your investment and defer your capital gains taxes on the sale at the same time.

Qualifications

Before you get too excited, you need to determine whether or not your property qualifies for 1031 exchange treatment. 1031 exchanges are restricted to real estate. Personal property exchanges are not allowed.

Within the realm of real estate, there are further restrictions. The real estate used in a 1031 exchange (both the relinquished property and the replacement property) need to be like-kind and held for investment or business use. Any real estate held primarily for personal use (such as your primary home or residence) is not allowed in a 1031 exchange.

1031 Exchange May be a Good Fit for Your Property

If you own investment or business real estate, a 1031 exchange may be a good fit for your property. When you exchange your property in a 1031 transaction, you are able to defer your capital gains tax burden and put that money to use in a continued investment. A qualified intermediary who specializes in 1031 exchanges can help you through all the details of your 1031 exchange and make sure you fully understand the various rules and requirements. Contact CPEC1031, LLC today to learn more about the many benefits of the 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.

© 2024 Copyright Jeffrey R. Peterson All Rights Reserved

Where to Find a Qualified Intermediary for Your 1031 Exchange

Working with a qualified intermediary can make your 1031 exchange a walk in the park. However, many people don’t know where to find a good intermediary for their exchange. In this article, we are going to discuss where to find a qualified intermediary for your 1031 exchange.

Search Online

A good place to begin your search for a qualified intermediary is online. Look for an intermediary who has experience specifically in the 1031 exchange industry. At CPEC1031, LLC we focus solely on 1031 exchanges. A lot of other intermediaries dabble in other services and aren’t as specialized.

Geographic Considerations

One common misconception is that your qualified intermediary has to be physically located in the same area as your property. That’s not true. You can work with a qualified intermediary from Minnesota, even if your property is located in New York or California (or any other state). That being said, it’s important to make sure your intermediary is familiar with the local customs and regulations of the geographical area where your property is located.

Defer Your Capital Gains Tax Burden with a 1031 Exchange

Defer your capital gains taxes with a 1031 exchange of real estate. CPEC1031, LLC has over two decades of experience facilitating exchanges of all shapes and sizes. We can put our vast experience to work on your next exchange and make sure you defer 100% of your gains. Contact our qualified intermediaries to discuss the details of your next 1031 exchange of real estate. You can set up your appointment with one of our qualified intermediaries at our Minneapolis offices today to learn more!

• 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.

© 2024 Copyright Jeffrey R. Peterson All Rights Reserved