The real estate market is hot, and it’s a great time to sell real property, but that can also mean more taxes. In this article, we’re going to talk about why now is the perfect time to learn more about section 1031 of the Internal Revenue Code.
Hot Seller’s Market
The real estate market is very hot right now, which is a great thing for sellers whose properties have increased in value. However, there are two sides to every coin. If your property has increased in value and you sell it for a high price, your capital gains taxes on the sale of that property are also going to be high. That means one thing – a bigger tax bill.
Avoiding a Tax Bill
If you want to avoid a big tax bill, as I imagine most investors do, a 1031 exchange can help! Using a like-kind exchange, you can defer your capital gains taxes on the sale of real estate. That being said, you are required to meet certain requirements outlined by the IRS in order for your exchange to succeed. You need to complete your exchange within 180 days, your property needs to qualify for 1031 treatment, and you have to exchange into like-kind property.
Like-Kind Intermediaries
At CPEC1031, your 1031 exchange is our business. With more than twenty years of experience, our qualified intermediaries have the skills and experience needed to guide you through the avenues of the like-kind exchange process – from the sale of your relinquished property, to the purchase of your replacement property. Contact us at our office in downtown Minneapolis to discuss the details of your exchange and start the tax-deferral process today!
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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