Many taxpayers have heard of the 1031 exchange, but don’t quite understand the real value of doing a 1031 exchange. In this article, we are going to discuss the value of a 1031 exchange of real estate.
The Real Value
The real value of a 1031 exchange of real property is that you get to defer your capital gains taxes that would have otherwise gone to the government. Instead of writing a check to Uncle Sam, you get to reinvest the net proceeds into a new property without having to pay capital gains taxes on them.
Depending on the location and size of your property, capital gains taxes on a standard sale can be quite a hefty sum – so much so that it may make you shy away from selling the property. That’s why exchanging your property in a like-kind exchange is a more tax advantageous route to take. You can defer those capital gains taxes, and keep your money working for you in a continued investment. Over time, you can continue to exchange up into newer and better properties – essentially deferring your capital gains taxes indefinitely.
1031 Exchange Services in MN
At CPEC1031 we offer 1031 exchange services to taxpayers in Minnesota and across the United States. With more than two decades of experience, our intermediaries have the skills needed to guide you through your transaction and ensure your exchange is 100% tax-deferred. We can prepare your documents, answer your questions, and advise you every step of the way! Reach out to our qualified intermediaries today to get your 1031 exchange up and running. Our main office is located in downtown Minneapolis, but we work with clients throughout 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.
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