How Like-Kind Exchanges can Help Real Estate Investors

Investing in real estate can be a difficult and complex game, but one tool that every taxpayer has at their disposal for real estate investment is the 1031 exchange. Even so, many taxpayers are unaware of the benefits of the 1031 exchange or that they can avail themselves of tax deferral by way of a 1031 exchange. In this article, we are going to talk about how you can invest in real estate by using section 1031 of the Internal Revenue Code.

Defer Your Taxes, Continue Your Investment

A 1031 exchange allows any US taxpayer to defer their capital gains taxes when selling qualified real estate. Depending on the size of your property and other factors, capital gains taxes can add up to a pretty hefty bill. Sometimes this tax bill discourages taxpayers from selling their property because they don’t want to take the tax hit. But if you exchange your property in a 1031 transaction – rather than selling it outright – you get to defer these taxes and continue your investment in a new property. This allows you to avoid a potentially huge tax bill, and keep your money working for you and compounding interest over time in a continued investment.

Capital Gains Tax Deferral

At CPEC1031, LLC, we pride ourselves on our dedication to our clients. For the past two decades we have been facilitating exchanges of real property for taxpayers around the country. We can help you through each and every stage of the 1031 exchange process, and ultimately help you defer your capital gains taxes when selling real property. This allows you to keep that money working for you in a continued investment. Contact us today to learn more about our services and to get your 1031 exchange off the ground!

• 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

Tax Savvy Investing with 1031 Exchanges

A 1031 Exchange allows us to sell a piece of investment, trade or business property, buy a new property, and defer the gain or profit from the sale (not owe taxes on the sale immediately). If you eventually sell the new piece of property, you would owe taxes at that time. Generally, all gains and losses on sales of real estate are taxable, but an exception lies within a 1031 exchange where the property sold is traded or "exchanged" for the same or link kind property. The new property is seen as a continuation of the original investment, so taxes are not due at the time of the sale.

Many people believe that tax-deferred exchanges are only for professional investors and huge corporations but this is simply not true. The main strategy is to purchase a rental home below market value, rent it for a year, sell it, and buy two rental properties for your own good. If you do this several times, there is a tendency that the IRS may take view that you are not a long term investor and disallow such exchanges. When you are ready to do a tax-deferred exchange, you will need a qualified intermediary, a CPA, or an attorney and you should always get professionals advice.

The 1031 Tax-deferred exchange is a great way to maximize your wealth. By keeping your investments growing without immediately paying taxes, you can do wonders for your net-worth. Remember, if you are planning to do a tax-deferred exchange, you really need to ask for advice from a professional that handles these transactions on a regular basis.

Get Your 1031 Exchange Started

Get your 1031 exchange started today by contacting CPEC1031. Our team of skilled qualified intermediaries has been facilitating like-kind exchanges of real estate for over two decades. We bring that level of experience to the table with each exchange we facilitate. Reach out to our team of 1031 exchange professionals today to learn more about the process and how we can help with your next transaction. You can find us at our primary office in downtown Minneapolis, or at one of our satellite offices around 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

How 1031 Exchanges Can Help You Launch Your Real Estate Investing Business

Section 1031 of the Internal Revenue Code is a fantastic and useful tool for real estate investors of all sizes. In this article, we are going to explain how you can use 1031 exchanges to help launch your real estate investing business.

Save Money by Deferring Capital Gains Taxes

The big draw of a 1031 exchange is that it allows you to defer your capital gains taxes when selling qualifying real property. That’s a huge benefit when you’re trying to launch a commercial real estate investing business. Many investors avail themselves of the 1031 exchange provision of the tax code to move into different sectors of the market or to “exchange up” into bigger replacement property. A 1031 exchange keeps your money working for you in a larger, continued investment – rather than having that money be tied up in capital gains tax liability.

Contact a Qualified Intermediary

If you are looking for assistance with your 1031 exchange, contact a qualified intermediary today! CPEC1031 has over two decades of experience working with investors on their 1031 exchanges. We can advise you, answer your questions, and prepare all the necessary documentation for your exchange. Contact us today to see how we can help you defer 100% of your capital gains tax when selling real estate. Our primary office is located in downtown Minneapolis. We also have numerous satellite offices across the United States.

• 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved