Many people are aware of the benefits of a 1031 exchange, but might not want to go through the hassle of setting up an exchange – thinking that they’d rather just sell their property, pay their capital gains taxes, and be done with it. But a 1031 exchange really isn’t as much of a hassle as many people think. In this article, we are going to explain why a 1031 exchange of real estate is worth any associated “trouble.”
The Benefits of a 1031 Real Estate Exchange
A 1031 exchange allows you to defer your capital gains taxes when selling real estate as long as you move those net proceeds into a like-kind investment property.
That’s a significant amount of money you can save by conducting a 1031 exchange. In a typical sale, that money would be gone – out of your hands after the sale. But a 1031 exchange allows you to hold onto that capital gains tax money and reinvest it in a like-kind property. The benefit to you is that your money continues to compound and build over time. You can even continue deferring those taxes over time by arranging 1031 exchanges every time you wish to see your property.
1031 Intermediary Services
A qualified intermediary can advise you on your exchange, answer any lingering questions you might have, and prepare your 1031 exchange documents so you are ready for closing. The qualified intermediaries at Commercial Partners Exchange Company have two decades of experience facilitating exchanges of real property. Contact us today to see if your property qualifies for a 1031 exchange and start saving money by deferring your capital gains taxes on your next real estate sale.
- 1031 Hotline: 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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