There are many opportunities for taxpayers who own real property in Burnsville and the surrounding area to defer their taxes in a 1031 exchange. At CPEC1031, LLC we have decades of experience facilitating real estate exchanges under section 1031 in Burnsville and throughout the state of Minnesota. Contact us today for help with your next Burnsville 1031 exchange!

Burnsville 1031 Exchange Requirements

Section 1031 of the Internal Revenue Code is available to all United States taxpayers. However, it is governed by numerous strict rules and requirements. Here are a few of the most important:

  • Qualifying Like-Kind Property. All property used in the 1031 exchange must be like-kind (meaning real estate). In addition, the property must be held for a qualifying purpose (investment or business use). Property that falls outside of these categories is not allowed in a 1031 exchange.

  • Reinvestment of Sales Proceeds. One of the most important aspects of a 1031 exchange is that the sales proceeds must be reinvested in a like-kind replacement property. There needs to be a continuation of the investment, rather than simply pocketing the cash from the sale.

  • Timeline Requirements. There are also strict timelines in a 1031 exchange. You have 180 days total from the sale of your relinquished property to the acquisition of your replacement property. The first 45 of those days are your identification period.

These are just a few of the many rules that need to be followed in order to conduct a successful Burnsville 1031 exchange. It’s essential to connect with a qualified intermediary with experience conducting 1031 exchanges in the Burnsville area for help with your particular exchange.

Burnsville 1031 Exchange Third-Party Administrators

At CPEC1031, LLC our Burnsville third-party administrators can help insulate you from receiving any taxable boot in a 1031 exchange of real estate. We have been conducting exchanges for more than twenty years. We can help you with your next real estate exchange – no matter how large or small. Reach out to us today at our Minneapolis office to learn more about the benefits of the 1031 exchange and how you can use it to your advantage when selling investment real estate.

Defer the tax. MAXIMIZE your gain.