The 1031 exchange is an incredibly powerful tool for deferring capital gains taxes on the sale of real estate. But many taxpayers are unaware of its true power. In this article, we are going to explain the true power of section 1031 of the Internal Revenue Code and how you can harness that power to save money on taxes when selling real estate.
How a 1031 Exchange Works
In a typical real estate sale, you sell a piece of property and then have to pay capital gains taxes on the sale. A 1031 exchange allows you to defer these capital gains taxes by reinvesting your net proceeds into a new replacement property.
How to Harness the Power of a 1031 Exchange
So how can you harness the tax-saving power of a 1031 exchange? Simple. Any United States taxpayer is eligible to sell property under section 1031. You just need to ensure that your property meets the required use guidelines (i.e. it’s held for investment use) and be sure to meet all the exchange deadlines. If you do everything correctly, you’ll save yourself a huge capital gains tax bill and keep your money working for you in a continued investment.
Feel the Power of the 1031 Exchange
If you’re ready to feel the true power of the 1031 exchange, contact CPEC1031 today. Our qualified intermediaries have over twenty years of experience facilitating exchanges of all shapes and sizes. We work with clients in the Twin Cities metro area, as well as the greater United States. Contact us today at our primary office located in downtown Minneapolis, or one of our satellite offices located around the country. Let us help you get your 1031 exchange up and running 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.
© 2019 Copyright Jeffrey R. Peterson All Rights Reserved