Capital gains taxes are at the top of mind for many real estate investors. In this article, we are going to offer up a few tips for cutting your capital gains tax burden when selling real estate.
Qualified Opportunity Funds
Qualified opportunity funds are a new method for deferring capital gains taxes. When selling a piece of real estate, you can move your sales proceeds into a qualified opportunity fund and defer your capital gains tax burden. However, be aware that these capital gains taxes will come due come December 26, 2026.
1031 Exchanges
1031 exchanges are perhaps the best tool for reducing your capital gains taxes when selling a piece of investment real estate. By setting your transaction up as a 1031 exchange, you can defer your capital gains taxes on the sale and reinvest those proceeds into a bigger, better replacement property. The benefits are numerous – you get to avoid a tax bill and keep your money working for you in a continued investment.
Reduce Your Capital Gains Tax Burden with a 1031 Exchange
CPEC1031 works with investors large and small on their like-kind exchanges of real property. With twenty years of experience working in the 1031 exchange industry, we have the skills needed to assist you in your real estate transaction. Reach out to our 1031 exchange professionals today at our offices in downtown Minneapolis. Let us help you through the complex 1031 exchange process so you can save on capital gains taxes when you sell 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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