When it comes to 1031 exchanges of real estate, the qualities of your property matter a great deal. In this article, we are going to talk about the qualities of a perfect 1031 Exchange property.
Property Quality Matters
The fact of the matter is that there is no perfect 1031 exchange property. Every taxpayer’s situation is different and there are many types of properties that work well in a 1031 exchange. However, just because the perfect property doesn’t exist doesn’t mean that you shouldn’t strive for perfection in your 1031 exchange.
It is essential to examine the qualities of your property when considering a 1031 exchange because not all property qualifies for like-kind exchange treatment. For example, all personal property (such as your primary residence) is barred from 1031 exchange. You need to make sure that the property you wish to exchange is, first and foremost, real estate held for a qualifying purpose. That qualifying purpose is typically defined as for use in your trade or business, or for investment. If your property has these qualities, there’s a good chance that it will qualify for a 1031 exchange.
Get Help with Your 1031 Exchange
The 1031 exchange process can be complicated. It’s important to work with a qualified intermediary who understands the ins and outs of section 1031 of the Internal Revenue Code. The qualified intermediaries at CPEC1031, LLC have been working with taxpayers on their like-kind exchanges for more than two decades. During that time, we’ve facilitated exchanges of all shapes and sizes. Let us put our extensive experience to work for you on your next 1031 exchange of real estate. Contact us today at our Minneapolis offices. We serve clients throughout Minnesota, as well as the entire 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.
© 2023 Copyright Jeffrey R. Peterson All Rights Reserved