When it comes to 1031 exchanges of real estate, most people are aware of the tax deferral benefits offered by section 1031. But there are a number of other potential benefits of doing a 1031 exchange that many people are unaware of. In this article, we are going to take a look at some of the benefits of 1031 exchange apart from tax deferral.
Greater Income Potential
Exchangors can sell any appreciated real property and acquire income-producing property with better cash flow and potential appreciation.
Change Property Types
With a 1031 exchange, taxpayers can exchange into different types of investment real estate. For example, taxpayers can exchange from residential to commercial property.
Relocate
Exchange your current property and relocate to a state with greater potential growth or lower tax rates.
Consolidate
Taxpayers who own multiple properties can consolidate by exchanging them into a single property.
Get out of Management Intensive Property
1031 exchanges allow you to exchange out of property that requires a lot of deferred maintenance and into new property that is less management intensive.
Lever Up
Lever up with a 1031 exchange by selling smaller property and stretching your equity out into larger property with greater potential appreciation.
CPEC1031
At CPEC1031, LLC, we are here to help you with your 1031 exchanges of real estate. We have been facilitating exchanges for taxpayers across the United States for over twenty years. Contact us today to discuss the details of your next 1031 exchange of real estate and start realizing the tax-saving benefits of section 1031. You can find us at our primary offices in downtown Minneapolis.
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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