Investing in real estate can be a difficult and complex game, but one tool that every taxpayer has at their disposal for real estate investment is the 1031 exchange. Even so, many taxpayers are unaware of the benefits of the 1031 exchange or that they can avail themselves of tax deferral by way of a 1031 exchange. In this article, we are going to talk about how you can invest in real estate by using section 1031 of the Internal Revenue Code.
Defer Your Taxes, Continue Your Investment
A 1031 exchange allows any US taxpayer to defer their capital gains taxes when selling qualified real estate. Depending on the size of your property and other factors, capital gains taxes can add up to a pretty hefty bill. Sometimes this tax bill discourages taxpayers from selling their property because they don’t want to take the tax hit. But if you exchange your property in a 1031 transaction – rather than selling it outright – you get to defer these taxes and continue your investment in a new property. This allows you to avoid a potentially huge tax bill, and keep your money working for you and compounding interest over time in a continued investment.
Capital Gains Tax Deferral
At CPEC1031, LLC, we pride ourselves on our dedication to our clients. For the past two decades we have been facilitating exchanges of real property for taxpayers around the country. We can help you through each and every stage of the 1031 exchange process, and ultimately help you defer your capital gains taxes when selling real property. This allows you to keep that money working for you in a continued investment. Contact us today to learn more about our services and to 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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