1031 real estate exchanges can help taxpayers of all types defer their capital gains taxes on the sale of real estate. Contact an experienced Edina qualified intermediary today by calling Commercial Partners Exchange Company at - 612.643.1031.
Edina 1031 Exchanges of Real Property
Section 1031 of the Internal Revenue Code allows any US taxpayer to defer taxes on the sale of real property so long as the net proceeds are exchanged into a like-kind replacement property. There are a handful of rules that govern like-kind exchanges of real property. Here are a few of the most important rules to keep in mind:
- Qualified Purpose. The first litmus test to use that will tell you whether or not you are a good candidate for a 1031 exchange is the qualified purpose test. All 1031 exchange property needs to be held for investment or business purposes. Any property held primarily for personal use is excluded outright.
- Like-Kind. The next thing to think about is like-kind. Since all 1031 property needs to be like kind, you want to make sure that your relinquished property and your replacement property are like-kind to one another.
- Debt, Value, Equity. Finally, you need to make sure that your replacement property is equal to or greater than your relinquished property in debt, value and equity.
These are only a select few of the rules and regulations that govern 1031 exchanges. A qualified intermediary can walk you through every step of the 1031 process and make sure you hit all of the required 1031 exchange benchmarks.
Qualified Intermediary in Edina, MN
The qualified intermediaries at Commercial Partners Exchange Company have been facilitating exchanges for taxpayers in Minnesota and across the country for decades. If you are looking to exchange property in the Edina area, contact us today to set up a time to chat - 612.643.1031.