The benefits of conducting a 1031 exchange of real estate are numerous, but many taxpayers don’t understand why they should consider a like-kind exchange instead of an outright sale. In this article, we are going to talk about why you should consider a 1031 exchange of real estate rather than an outright sale.
Defer Your Capital Gains Tax Burden
When you choose to sell a piece of investment real estate in a normal, straight forward sale, you will need to pay capital gains taxes on the net proceeds. Depending on the size of your property, this can be a significant tax burden. When you exchange your property under section 1031, you get to defer this capital gains tax burden by reinvesting your net proceeds into a replacement property.
Compound Your Wealth
Not only do you get to defer your capital gains taxes with a 1031 exchange, you also compound your wealth by continuing your investment into a bigger replacement property. This keeps your money working for you, rather than it going straight to the government in capital gains taxes.
Defer Your Capital Gains Taxes & Maximize Your Gain
Defer your capital gains tax burden and maximize your gain with a 1031 exchange! Section 1031 is available to all United States taxpayers who own real estate held primarily for investment or business purposes. At CPEC1031, LLC our 1031 exchange professionals have been facilitating like-kind exchanges of all types for over twenty years. We can help you through all the unique details of your specific 1031 exchange of real estate. Contact us today at our Minneapolis office to find a time to chat with one of our 1031 exchange specialists.
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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