If you own investment or business property in Woodbury (a duplex, retail business, apartment building, etc.) you may be able to benefit from the tax-savings offered by a 1031 exchange. Contact CPEC1031, LLC today to learn more about the like-kind exchange process and see if you are a good candidate for 1031 exchange.
Woodbury Like-Kind Exchanges
If you’re planning on doing a 1031 exchange in Woodbury or anywhere else for that matter, you need to be aware of various rules, requirements, and deadlines. Here are a few of the most important:
Qualifying Purpose. Before you dive into your 1031 exchange you need to ensure that your property is held for a qualifying purpose. 1031 exchanges can only be done with real property that’s held for investment or business use. That means no personal property, such as your primary residence.
Identification Period. The first 45 days of your 180 day exchange period are what’s known as your “Identification Period.” During this time you need to give written identification for the replacement properties you intend to exchange into. This period runs concurrently with the start of your 180 day period and can only be extended in extremely rare circumstances.
Taxable Boot. The most important thing to remember about a 1031 exchange is that you cannot constructively receive any of the sales proceeds (taxable boot) when you sell your relinquished property. Those proceeds need to be directly reinvested in the replacement property so you have a continuation of investment. A qualifying intermediary helps insulate you from receiving this boot by handling your 1031 funds in a segregated escrow account.
The qualified intermediaries at CPEC1031, LLC facilitated exchanges under section 1031 of the Internal Revenue Code in Woodbury and the surrounding Minnesota area, including the cities of: Lake Elmo, Stillwater, Maplewood, Oakdale, Cottage Grove, and more. Get the help you need with your next 1031 exchange in Woodbury by contacting a qualified intermediary with experience facilitating exchanges in your area.
Woodbury 1031 Exchange Professionals Who Can Help
CPEC1031, LLC employs Woodbury 1031 exchange professionals who can help you through all the ins and outs of the like-kind exchange process. Our specialty is 1031 exchanges – we have been providing like-kind exchange services to taxpayers throughout the United States for more than twenty years. We pride ourselves on our excellent customer service and have the track record to back it up. Reach out to our exchange professionals today to learn more about the specifics of the 1031 exchange process.