Big news in the 1031 exchange world! Pennsylvania will recognize 1031 exchanges effective 1/1/2023. Historically, the state had not recognized non-simultaneous 1031 exchanges at the state level. Now, thanks to bill HB1342 that was just signed by the governor (after passing both chambers of the state legislature), Pennsylvania conforms to the federal tax paradigm for like-kind deferred exchanges.
1031 Exchange Tax Deferral
With this new bill, real property owners in the state of Pennsylvania will be able to avail themselves of the tax-saving benefits offered by section 1031 of the Internal Revenue Code. This is a great opportunity for owners of qualifying real estate in Pennsylvania who want to compound and build their wealth over time by exchanging into bigger and better replacement property, rather than taking a capital gains tax hit with a traditional sale.
Contact a Qualified Intermediary
If you have any questions about this new Pennsylvania law or how it might impact your 1031 exchange, reach out to our team today! At CPEC1031, LLC we have over two decades of experience facilitating 1031 exchanges across the United States. We can guide you through the process and answer any questions you might have along the way. Contact us today at our primary offices in downtown Minneapolis.
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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