1031 exchanges can be complex – especially to those who are unfamiliar with the process. But it doesn’t have to be that complicated! The purpose of this article is to make 1031 exchanges as simple as possible.
Like-Kind Property
1031 exchanges are also commonly called “like-kind” exchanges. That’s because all property in a 1031 exchange needs to be like-kind. Thankfully, like-kind is pretty broad when it comes to real estate.
No Personal Property Allowed
All property involved in a 1031 exchange transaction also needs to be held for business or investment use. Property that’s held primarily for personal use (your primary residence, for example) does not quality for 1031 treatment. Additionally, with the new Tax Cuts & Jobs Act that went into effect on January 1, 2018, personal property is no longer allowed. Only real estate is allowed to be exchanged in a 1031 transaction.
Talk with a Qualified Intermediary
When in doubt, it’s always a good idea to talk with a qualified intermediary about your 1031 situation. An intermediary can simplify the 1031 exchange process for you and make sure your exchange goes off without a hitch.
1031 Exchange Services in MN
The qualified intermediaries at CPEC1031, LLC have twenty years of experience facilitating exchanges of real property throughout the United States. We can help ensure that your exchange progresses without any issues. Give us a call today to set up a time to talk with one of our skilled qualified intermediaries about your 1031 exchange of real property. Our office is located in downtown Minneapolis, but we work with clients throughout Minnesota and all over the 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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