In 2018, Congress eliminated a huge component of section 1031 – personal property exchanges. Prior to that, taxpayers used to be able to do exchanges of airplanes, railroad cars, printing presses, and all sorts of other types of personal property. Rental car companies used to do 1031 exchanges on their fleets to upgrade their vehicles to newer models. This illustrates how precarious section 1031 is at all times. With the stroke of a pen, the 1031 exchange could be eliminated or radically modified.
It's important to continue educating people about the many benefits and incentives offered by section 1031 so this provision is preserved. 1031 exchanges are instrumental in keeping US real estate values high, capital moving effectively throughout the marketplace, and promoting the economy as a whole. If section 1031 were to be minimized or fully repealed, it would cause serious disruptions in the commercial real estate marketplace. Without the incentive of capital gains tax deferral, many taxpayers would decide to stay put and not sell their property – leading to stagnation.
Is a 1031 Exchange the Right Option For Your Situation?
Having trouble deciding if a 1031 exchange is right for you? You’ve come to the right place. CPEC1031, LLC can help guide you through the 1031 process and examine all the details unique to your property to determine whether a like-kind exchange is your best option. Contact us today to learn more about how you could benefit from a 1031 exchange of your property. We have over twenty years of experience facilitating exchanges of all types and can help you through the specifics of your 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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