1031 exchanges are available to both large and small investors. Reach out to one of our Duluth qualified intermediaries today to learn more about the tax-saving benefits of a 1031 exchange – 612.643.1031.
Duluth 1031 Exchanges Explained
Using a 1031 exchange, you can defer your capital gains taxes when you sell a piece of real property. The catch is that you have to take your net proceeds from the sale and move them into another property as a continuation of your investment. The 1031 provision was created by Congress to spur economic growth by encouraging investment.
With any type of 1031 exchange, there are a variety of rules that you need to follow. First, you need to understand that not all property qualifies for 1031 exchange. Only property that has been used for investment or business purposes is allowed. That means that your personal car or your family home are not eligible for 1031 treatment. The property you are exchanging out of and the property you are exchanging into need to be like-kind to one another. All real estate is generally like-kind to all other real estate, but items of personal property are more strictly defined. Finally, you need to ensure that your exchange is completed within the 180 day deadline.
Minnesota 1031 Exchange Resources
The following resources will help you develop a better understanding of 1031 exchanges. We have also included links to a couple of tools that will help you calculate your potential capital gains and your deadlines in a 1031 exchange.
Like-Kind Tax Exchange Company in Duluth, MN
Many Minnesota investors have benefited from the tax-deferral provided by a 1031 exchange. If you have a piece of real or personal property that you are looking to sell, consider a like-kind exchange first. It may save you a sizable tax bill. Our Duluth 1031 exchange professionals are on hand now to walk you through every step of your 1031 exchange – 612.643.1031.
