Many taxpayers are curious about 1031 exchanges but might be hesitant to take the leap into tax deferral. In this article, we are going to talk about a few reasons why you might want to take the 1031 exchange leap to defer capital gains taxes.
The Benefits of Capital Gains Tax Deferral
A 1031 exchange has numerous benefits. Perhaps the greatest benefit offered by section 1031 is that it allows you to defer capital gains taxes on the sale of real estate (held for investment or business use) as long as you reinvest the sales proceeds into a like-kind replacement property. This allows you to save a potentially large sum of money in capital gains taxes while keeping your hard-earned money working for you in a continued investment.
Capital gains tax deferral is often reason enough to take the 1031 exchange lap, but there are other benefits as well. With a 1031 exchange, you can move into and out of different segments of the real estate industry. For example, if you own a retail space and want to move into an apartment building, a 1031 exchange allows you to do so in a tax advantageous manner.
1031 Qualified Intermediary Services
CPEC1031, LLC offers qualified intermediary services to US taxpayers who are looking to defer their capital gains taxes on the sale of investment property. Our team of intermediaries can help guide you through the unique details of your 1031 exchange and answer any questions you have along the way. A 1031 exchange is a powerful tax-saving tool, but you need to make sure you are meeting certain benchmarks in order to defer 100% of your capital gains taxes. Let us help ensure your like-kind exchange is a complete success. Contact CPEC1031 today to get started.
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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