1031 exchanges of real estate are alive and well. If you’ve been thinking about doing a 1031 exchange of your real property, 2021 may be the year for you. In this article, we are going to talk about why you should consider doing a 1031 exchange in 2021.
Defer Your Taxes!
The greatest benefit of a 1031 exchange is that you are able to defer your capital gains taxes on the sale of your property. There are, of course, a few caveats that come with this. You need to reinvest your net proceeds into a property that is greater than your relinquished property in value, equity, and debt; you need to complete the transaction within 180 days; all property needs to be like-kind and needs to be used for a qualifying purpose.
Keep Your Money Working For You!
In a 1031 exchange, you reinvest your sales proceeds from your relinquished property into a bigger replacement property. In essence, you’re taking money that would have otherwise gone to the government in capital gains taxes and instead keeping that money working for a you in a continued investment. This has the dual benefit of spurring economic growth and incentivizing taxpayers to keep reinvesting in the market.
Minnesota 1031 Exchange Company
The qualified intermediaries at CPEC1031, LLC have more than two decades of experience facilitating exchanges. Our intermediaries can help you through each and every stage of your 1031 exchange – from the sale of your relinquished property to the closing of your new replacement property. Contact us today to set up a time to speak with one of our qualified intermediaries about your 1031 exchange. Our primary office is located in downtown Minneapolis, but we work with clients throughout the state of Minnesota, and across 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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