The first step in any like-kind exchange is figuring out if you can even do one with the property in question. To that end, you need to determine whether your property qualifies for 1031 treatment. In this article, we are going to talk about the best way to determine if your property can be used in a like-kind exchange.
Is Your Property Held for a Qualifying Purpose?
The most important question you need to ask yourself prior to conducting a 1031 exchange is this: “is my property held for a qualifying purpose?”
Any and all property involved in a like-kind exchange must be held for a qualifying purpose. So what exactly is “qualifying purpose” in the realm of 1031 exchanges? In the simplest terms, your real property qualifies for like-kind exchange treatment if it is held for investment purposes, or for use in your trade or business. That immediately excludes property held primarily for personal use (e.g. your primary home).
Reach Out to CPEC1031, LLC to Start Your Exchange
A 1031 exchange may benefit you if you are looking to sell investment real estate but wish to avoid of potentially large capital gains tax bill. Reach out to the qualified intermediaries at CPEC1031, LLC today to start your exchange of real property. Our primary office is located in downtown Minneapolis, but our service area extends throughout the state of Minnesota and across the country. No matter where your property is in the United States, we can help you defer your capital gains with a 1031 exchange!
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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