In this article, we are going to talk about why it may not be beneficial to park your 1031 exchange replacement property in a holding company.
Financing
Depending on the details of your exchange, the financing may be too complicated to have a 1031 exchange accommodation titleholder acquire your new replacement property. It might simply be unfeasible to get it through the financing committee if lenders are uneasy.
Tax Incentives
Tax incentives are another reason why it might not be to your benefit to park your replacement property in a holding company. For example, there may be low income tax credits that might incentivize you to get into the new replacement property quickly.
Contact CPEC1031
The qualified intermediaries at CPEC1031 have been conducting real estate 1031 exchanges for decades. We bring our extensive experience to the table for every like-kind exchange we facilitate. Contact us today to learn more about our 1031 exchange services and let us help you get your exchange off the ground. Our main office is located in Minneapolis, MN but we provide services to clients throughout the United States.
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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