Like-kind exchanges under section 1031 of the Internal Revenue Code are excellent vehicles for tax-deferral, but it can sometimes be difficult to ascertain when a 1031 exchange is the right move for you. In this article, we are going to talk a little bit about how to decide when a 1031 exchange is the right move for your particular situation.
Does Your Property Fit the 1031 Definition?
Before you start thinking about specific timing, you need to figure out if your property fits the 1031 definition. Namely, your property needs to be held for investment or business purposes (not personal use).
Is it the Right Time to Start Your Exchange?
If your property qualifies for 1031 exchange, the next step is to determine whether now is the right time to start your exchange. Time is a huge element in the 1031 exchange process. Once you get your exchange started, you only have 180 days to finish. With that in mind, it’s important to take the necessary steps to prepare for your exchange. Contact your team of advisors, line up a suitable replacement property, and make sure you have all your bases covered.
Harness the Power of Section 1031
Any United States taxpayer can harness the power of section 1031 of the Internal Revenue Code to defer taxes on the sale of qualifying real estate. 1031 exchanges are available to even the smallest real estate investor. Talk with a qualified intermediary at CPEC1031, LLC today to get a handle on the like-kind exchange process and see if your property qualifies for 1031 exchange treatment. Our team of professionals has over twenty years of experience and can help guide you through the details of your unique 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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