1031 exchanges are a great way to save taxes on the sale of real estate. But are 1031 exchanges entirely tax free? That’s our topic for this article. Read on to learn more!
Tax-Free vs. Tax-Deferred
1031 exchanges are not “tax free.” A more appropriate way of saying would be that 1031 exchanges are tax deferred. When you conduct a 1031 exchange, you defer your capital gains tax on the exchanged real estate. That does not mean that the taxes simply disappear. Rather, they are deferred to some point in the future. If at some point down the line you decide to sell the replacement property that you exchanged into, you would then have to pay capital gains taxes on the sale of that property.
1031 Exchange Advisors
CPEC1031, LLC has two decades of experience working with taxpayers all over the country on their 1031 exchanges of real estate. We have the experience and the skills necessary to make sure your exchange meets all the requirements set out by the IRS. We can prepare all your documentation, answer your questions, and advise you every step of the way. Contact us today to learn more about the 1031 exchange or to get your exchange started. Our main office is located in Minneapolis, but we work with clients across the state and country.
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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