One of the best aspects of section 1031 is that it applies to nearly all investment real estate. As long as your property is held for the appropriate purposes (investment or business), you can exchange an apartment complex for a hotel, farmland for a retail building, or any other combination. In this article, we are going to look at a few types of real estate that are commonly exchanged under section 1031 of the Internal Revenue Code.
Apartment Buildings & Hotels
Apartment buildings are some of the most commonly exchanged properties under section 1031. If you own a duplex building and want to exchange up to a fourplex – you’re a great candidate for 1031 exchange.
Farmland
Many farmers are not aware that they can avail themselves of a 1031 exchange when selling their land. This can allow them to defer a big capital gains tax bill and reinvest their assets into a less management intensive property in their retirement years.
Retail
Retail buildings, storefronts, strip malls, and more can all qualify for 1031 exchange treatment as well.
Learn More About Section 1031
If you’d like to learn more about section 1031 of the Internal Revenue Code and how it can help you save money on capital gains taxes, contact CPEC1031 today. Our qualified intermediaries have over two decades of experience facilitating exchanges of real property across the United States. We can help guide you through the entire 1031 exchange process and make sure you feel comfortable every step of the way! Contact us at our downtown Minneapolis office to set up a time to meet.
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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