1031 exchanges allow you to defer your capital gains taxes on the sale of real estate if you exchange into like-kind property. Contact us today to speak with one of our St. Paul qualified intermediaries about your 1031 exchange - 612.643.1031.
1031 Exchanges of Real Property
Under section 1031 of the Internal Revenue Code, you can defer taxes on the sale of both real and personal property. However, there are certain rules that govern these exchanges. Here are the most important rules to remember:
- Like-Kind. All property involved in the exchange (both the relinquished property and the replacement property) needs to be like-kind in nature.
- Qualified Purpose. You need to hold your 1031 property for a qualified purpose (for use in your trade or business, or for investment) in order to qualify for 1031 treatment.
- Debt, Value, Equity. You also want to go up in value, equity, and debt with the replacement property you exchange into.
These and other rules all need to be met for your exchange to go through. 1031 exchanges can be complex transactions. Make sure you get all of your questions answered by a qualified intermediary before completing your exchange.
St. Paul Qualified Intermediary
At Commercial Partners Exchange Company, our team of skilled qualified intermediaries have been helping clients throughout the Twin Cities with their 1031 exchanges for decades. Give us a call today to get your 1031 exchange set up - 612.643.1031.