In a 1031 exchange, you need to go up in value, equity, and debt on your replacement property. With the amount of value that you need to match, it sometimes makes sense to exchange into more than one property.
1031 Exchange Example
For example, let’s say you are selling a condo and want to purchase 2 replacement properties, as well as a piece of land as a 3rd purchase with any leftover money from the sale. Is that allowed with a 1031 exchange?
Multiple Replacement Properties
The short answer is yes, you can purchase multiple replacement properties, as long as they are US real property and held for investment/business.
Contact a Qualified Intermediary
If you’re interested in saving money in capital gains taxes with your next sale of investment real estate, a 1031 exchange may be right for you. At CPEC1031, LLC our qualified intermediaries can help you through all the steps of a 1031 exchange. We have over twenty years of experience in the 1031 exchange industry and have the knowledge to guide you through your exchange. Contact us today at our downtown Minneapolis offices to learn more and see how we can help.
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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