Like-kind exchanges help investors large and small defer their taxes on the sale of real estate. A qualified intermediary can help you through all of the steps in your exchange. Call us today to talk about the details of your 1031 exchange - 612.643.1031.
1031 Exchange Company in Duluth, MN
What is a 1031 exchange? Section 1031 of the Internal Revenue Code establishes a method for taxpayers to defer their capital gains taxes on the sale of real property as long as several rules are satisfied. First and foremost, you have to take all of your net proceeds on the sale of your property and roll those into a new like-kind property. This is a continuation of your investment that benefits you (by allowing you to defer your taxes) as well as the economy as a whole. Your property needs to be held for use in your trade or business - and not for personal use - so you can't exchange your family home that you consider your principal residence. Exchanged property also needs to be like-kind in order to qualify.
Let's take a look at an example of a 1031 exchange of real estate. Imagine you own an apartment building in downtown Duluth that you want to sell. If you sell that property you would normally have to pay capital gains taxes on the sales proceeds. But instead of selling the property and paying those taxes you can exchange into a new property - say a hotel in Canal Park - and roll those net proceeds into that newer property.
1031 Exchange Resources
We have compiled a great list of 1031 exchange resources for investors. Click on the links below to learn about common 1031 exchange terminology, and to calculate your 1031 exchange deadlines:
Contact a Duluth 1031 Intermediary
At Commercial Partners Exchange Company, our qualified intermediaries have decades of experience aiding investors in the Duluth area with their 1031 transactions. If you have a property that you're looking to exchange in Duluth or somewhere else in Minnesota, talk to a 1031 exchange professional early in the process to ensure a successful exchange. Give us a call today to discuss your options and start your Duluth like-kind exchange today - 612.643.1031.