Many people assume that 1031 exchanges can only be used by big fancy real estate investors. But the fact is that any United States taxpayer can utilize section 1031 of the Internal Revenue Code to save taxes when selling real property. In this article, we are going to talk about how 1031 exchanges can be utilized by everyone to defer capital gains taxes on the sale of real estate.
Tax Deferral for All
When you sell a piece of real property, you are liable for the capital gains taxes on the sale. Depending on the property, these taxes can add up quickly and be a huge hindrance for the taxpayer conducting the sale. Sometimes the capital gains tax bill gets so large that it deters the taxpayer from selling the property entirely. That’s not good for the taxpayer and it’s not good for the economy as a whole.
This is exactly why the 1031 exchange was created – to incentivize property owners to continue investing and to spur economic growth. And it’s not just for big wig investors. Even taxpayers that own relatively small properties can utilize the 1031 exchange – so long as they meet the necessary requirements.
1031 Exchanges in Minneapolis, MN
If you are considering a 1031 exchange on a property in Minnesota, contact the qualified intermediaries at CPEC1031, LLC today. Our 1031 exchange specialists have over two decades of experience facilitating exchanges of real property in Minnesota and across the country. We can help you through every level of your exchange – from the sale of your relinquished property, to the acquisition of your replacement property. Don’t hesitate to contact us today at our downtown Minneapolis office to set up a time to meet with our team.
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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