Many taxpayers are curious about the 1031 exchange process but aren’t sure if a 1031 exchange is right for them. In this article, we are going to discuss when it’s a good idea to do a 1031 exchange of investment property.
You Want to Defer Your Capital Gains Taxes
The biggest benefit of section 1031 is that is allows you to defer your capital gains taxes on the sale of real estate the qualifies (i.e. real estate held for business or investment purposes).
You Want to Transition Out of Management Intensive Property
1031 exchanges are also an excellent vehicle for transitioning out of management intensive property. This is particularly common among older investors who no longer wish to own and operate management intensive properties like apartments as they get into their retirement years.
You Want to Move to a Different Geographic Area
1031 exchanges can be conducted using property throughout the United States. I you are moving to a different area of the country and want to keep your investment property nearby, you can use a 1031 exchange to do so!
Like-Kind Exchange Resources
CPEC1031, LLC is your one-stop-shop for all things relating to 1031 exchanges. With over twenty years of experience in the 1031 exchange industry, we have the ability to guide you through the unique ins and outs of your next like-kind exchange. Our qualified intermediaries are standing by to facilitate your exchange and help you defer 100% of your capital gains tax burden when selling investment or business real estate. Reach out to our professionals today for help with your exchange. Find us at our Minneapolis office today to set up an appointment.
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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