If you’re curious about 1031 exchanges, there are some signs that can help you determine whether or not to conduct one. In this article, we are going to discuss three signs it’s time to consider a 1031 exchange or real estate.
You Want to Move to a Different Geographical Area or Industry
If you want to get out of a particular geographical region, a 1031 exchange may be just the ticket! In a 1031 exchange you can exchange properties across regions and industries – so long as the properties are like-kind and held for business or investment use.
You Want to Move into a Less Management-Intensive Property
Many property owners who are getting into their retirement years want to move out of management-intensive properties and into more “hands-off” investment properties. A 1031 exchange can help you do exactly that.
You Want to Defer Your Capital Gains Taxes & Continue Your Investment
Perhaps the biggest sign of all to do a 1031 exchange is the benefit of capital gains tax deferral. When you sell a qualifying property in a 1031 exchange, you get to defer your capital gains tax burden and continue your investment in a bigger replacement property. Not only do you get to avoid a potentially huge capital gains tax hit, but you keep that money compounding into the future!
Find a Qualified Intermediary Near You
Find a qualified intermediary near you to assist with your 1031 exchange of investment real estate. CPEC1031, LLC employs qualified intermediaries that help taxpayers across the United States exchange their properties and defer their capital gains taxes in the process. We can help you better understand the intricacies of section 1031 and determine whether your property is a good fit for a like-kind exchange. Contact us at our Minneapolis office today to learn more about the process and how we can help with your next 1031 exchange of real estate.
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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