The most successful taxpayers who utilize 1031 exchanges are constantly thinking about their next exchange. These taxpayers don’t start and stop their 1031 exchange – they live the exchange all the time.
Theoretically, you can start with a single-family rental property, and exchange that into a duplex. After a while you can parlay that into an 8-unit property. When you’ve got your bearings, you can then exchange that 8-unit for a 24-unit property. Before you know it, you could be up to 100 units. You can use 1031 to build your wealth without the drag of taxation. 1031 allows you to accumulate an enormous amount of wealth because you can reinvest your equity and leverage other people’s money. As you build your skills in the investment real estate industry, lenders will be willing to take a greater risk on you, allowing you to continue to build your wealth and chain together multiple 1031 exchanges.
Maximize Your Gain By Deferring Taxes
With a successfully executed 1031 exchange, you maximize your gain by deferring your tax burden. This can save you a lot of money and, even better, keep that money working for you in a continued investment. Many US taxpayers have availed themselves of the benefits of section 1031 of the Internal Revenue Code and you can too! However, there are strict rules you must abide by in order to complete a successful exchange of real estate. A 1031 intermediary can help ensure that you have all the necessary details in line before you even begin your exchange. Call CPEC1031, LLC today to learn more about the like-kind exchange process and 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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