1031 exchanges can provide significant benefits for investors large and small. But you need to make sure you prepare accordingly in order to ensure a successful like-kind exchange. Drop us a line today to speak with our 1031 exchange qualified intermediaries about your like-kind exchange – 612.643.1031.
Bemidji 1031 Exchange
Here’s how a 1031 exchange works. A taxpayer has a piece of property that they want to sell. If they were to sell it in a standard transaction, they would have to pay a hefty amount in capital gains taxes. Instead of getting hit with a huge tax bill, you can defer those taxes by moving your net proceeds into a newer, bigger, better property. Here are a few of the most important requirements that must be met in order to complete a successful 1031 exchange:
- Value, Equity, Debt. You need to make sure your replacement property is equal to or greater than your relinquished property in terms of value, equity, and debt.
- Requisite Use. You also need to hold your relinquished property and replacement property for the requisite purpose – specifically for investment or business use.
Like-kind property is one of the most important requirements in any 1031 exchange. For more information about what constitutes “like-kind” in a 1031 exchange, check out the below video:
Minnesota 1031 Exchange Resources
Take a look at these helpful 1031 exchange resources for help with your personal transaction. If you have additional questions, our team of 1031 exchange professionals are always available to help.
Real Estate Exchange Company in Bemidji, MN
Get your 1031 exchange off the ground today by reaching out to a 1031 exchange professional. Our qualified intermediaries have decades of experience facilitating like-kind exchanges of personal property and real property in northern Minnesota. Contact our Bemidji qualified intermediaries now to talk through the details of your real estate exchange – 612.643.1031.