A 1031 exchange allows you to defer your capital gains on the sale of real property. The key word there is “defer.” Contrary to what many think, this does not mean you get to completely avoid paying taxes on your sale – only that you are deferring your taxes until a later date. But you can use 1031 exchanges to effectively defer your taxes indefinitely. In this article, we are going to discuss some advanced 1031 exchange strategies for a lifetime of tax deferral.
Continuous Tax Deferral
There is no limit to the amount of 1031 exchanges a taxpayer can engage in, so long as these exchanges abide by the rules and regulations set out in section 1031 of the Internal Revenue Code. This means you can essential continue deferring your capital gains taxes when selling your investment real estate until you die. You can even pass this tax deferral onto your heirs after death with the proper estate planning. You just have to keep exchanging up into bigger and better replacement properties – deferring your taxes every step of the way.
CPEC1031
For the past twenty years, our qualified intermediaries have been helping taxpayers with their real estate exchanges. A 1031 exchange allows you to defer your capital gains taxes when you’re selling property. Our intermediaries are ready to help you through all the aspects of the exchange from the sale of your relinquished property to the closing of your replacement property. Give us a call today to set up a time to chat with our intermediaries and get your 1031 exchange off the ground!
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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