1031 exchanges are a great vehicle for building wealth, but many investors aren’t aware of the wealth-building benefits of the like-kind exchange. In this article, we’re going to discuss how to build wealth with 1031 exchanges of real estate.
It’s All About Keeping Your Money Active
At the end of the day, building wealth is about keeping your money working for you in an active investment.
When you sell a piece of commercial real estate, you are responsible for paying the necessary capital gains taxes on that sale. But wouldn’t it be better to avoid writing that check to Uncle Sam and instead rolling those sales proceeds into a new property? That’s exactly what a 1031 exchange does for you. It helps you avoid a big tax bill and keeps your money compounding and building wealth over time in a continued investment. Who wouldn’t want that?
1031 exchanges exist in the Internal Revenue Code to encourage investment. Deferring capital gains taxes on the sale of real estate is a pretty sweet deal, and the IRS allows it as long as you meet the required benchmarks for 1031. This benefits the economy as a whole, as well as the individual taxpayer conducting the exchange who gets to watch their money continue to build wealth instead of cutting a check for the tax on the sale.
Qualified Intermediaries in Minnesota
We partner with the skilled qualified intermediaries at CPEC1031, LLC to provide our clients with top-notch 1031 exchange services when needed. The intermediaries at CPEC1031 have been facilitating exchanges for more than two decades in Minnesota and across the country. If you are interested in learning more about how you can save money on the sale of real estate, contact us today at our downtown Minneapolis office to learn more about the 1031 exchange process.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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