A 1031 exchange can help keep your money working for you in a continuation of your investment, thus compounding and building your wealth over time. But how exactly does that work?
Keep Your Money Working For You
When you sell investment real estate in a typical, straightforward sale, you are responsible for paying capital gains taxes on the net proceeds you receive. Depending on the size and value of your property, this can add up to a sizeable tax bill which may even make you question whether or not you want to sell your property at all.
Thankfully, there is an alternative option – a 1031 exchange. In a 1031 exchange (aka like-kind exchange), you can defer your capital gains tax burden when selling real estate that qualifies. The catch is you have to reinvest your net proceeds into a replacement property, rather than pocketing the proceeds. The benefits of this are many. You get to defer a potentially huge tax bill when selling your property and you can keep your money working for you in a continued investment.
Get Help with Your Next Like-Kind Exchange
Get the help you need with your next like-kind exchange of investment real estate. CPEC1031, LLC is here to help you through all the aspects of your next 1031 exchange, from beginning to end. Our team of qualified intermediaries can guide you through the like-kind exchange process and ensure you are well prepared when it comes time to close on your property. Let us put our 20+ years of experience to work for you on your next 1031 exchange. Contact us today to learn more.
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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