How Does a 1031 Exchange Work?
A 1031 exchange is a provision in the tax code that allows taxpayers to defer capital gains taxes on the sale of certain types of real estate, provided they meet certain criteria. First and foremost, all of the real estate involved in a 1031 exchange must be held for investment purposes. Personal property is not allowed in a 1031 exchange. You also only have a limited amount of time to complete your exchange after it’s begun (180 days total, to be exact). These are just a few of the many rules you need to abide by in a 1031 exchange. It’s always a good idea to work with a qualified intermediary throughout the course of your 1031 exchange.
At CPEC1031, LLC we provide 1031 exchange services throughout the state of Minnesota, including the cities of: Detroit Lakes, Fergus Falls, Park Rapids, Pelican Rapids, Richards, Shoreham, Audubon, and more!
Defer Your Capital Gains Taxes with a Detroit Lakes Like-Kind Exchange
Capital gains tax deferral is one of the numerous benefits of a 1031 exchange. Rather than cut a check to the government when you sell your investment property, why not reinvest that money into a replacement property and keep your money working for you over time?
A 1031 exchange also allows you to move out of and into different markets and geographic areas. For example, you could sell a retail building in Park Rapids and exchange into an apartment building in Detroit Lakes – all while deferring your capital gains tax burden.
Detroit Lakes Like-Kind Exchange Resources
The more informed you are about 1031 exchanges in Detroit Lakes, the better suited you’ll be to completing a successful exchange. Here is a list of helpful online resources related to 1031 exchanges:
1031 Exchange Services in Detroit Lakes, MN
Are you looking to sell investment real estate in the Detroit Lakes area but don’t want to get hit with a huge capital gains tax bill? If so, a 1031 exchange may be the solution you’re searching for! With a like-kind exchange under section 1031 of the Internal Revenue Code, you can defer your capital gains taxes when selling qualifying real property. Doing so allows you to keep your money compounding and building over time, rather than paying it out in taxes. Reach out to the qualified intermediaries at CPEC1031, LLC today to learn more about the many benefits of the 1031 exchange and get started with your next Detroit Lakes exchange!