Typically when you sell property, you are required to pay capital gains taxes on the sale proceeds. With a 1031 exchange, you can use the money from the sale of property, defer the taxes, and reinvest that money into new property. 1031 exchanges were created by the IRS to encourage people to continue investing in the economy. It is a completely legitimate way to defer your capital gains taxes and continue to build your wealth over time.
What is a Delayed 1031 Exchange?
A delayed 1031 exchange is the standard way of exchanging property under section 1031 of the Internal Revenue Code. Delayed 1031 exchanges offer a fantastic way to defer the taxes on the net proceeds of a sale and maximize your gain by keeping that money working for you in newer property. It is important to involve a qualified intermediary early on in the process. Our exchange professionals have been working with taxpayers in the Rochester area for decades. Give us a call today to start your exchange.
What is a Delayed 1031 Exchange?
A delayed exchange is the most common form of 1031 exchange in which the taxpayer sells a property, and then has 45 days to identify new like-kind property, and 180 days total to complete the exchange. A qualified intermediary is required to insulate the taxpayer from recognizing any of the gain from the sale. Your QI will also draft all the appropriate documents and make sure you avoid any potential pitfalls during the course of your exchange.
Delayed Exchange Benefits
The delayed exchange offers all the benefits of a standard 1031 exchange. You get to defer paying capital gains taxes on the sale of property, and roll those net proceeds into other bigger, more valuable property. The idea is that you can keep your money working for you by investing it into different property.
Of course, you still need to abide by all the standard 1031 regulations the 45 day / 180 day timeframes, and the value, debt, equity rule.
Rochester Delayed 1031 Exchange
A delayed 1031 exchange requires the help of a qualified intermediary. Our Rochester intermediaries have been facilitating exchanges throughout Minnesota for decades and have the knowledge and expertise to ensure your successful exchange. Set up your Rochester 1031 exchange today by giving our Minnesota qualified intermediaries a call.
Rochester 1031 Exchanges
There are many rules that govern 1031 exchanges. It’s essential to have a skilled 1031 professional on your side to make sure you have all your bases covered. Our Rochester qualified intermediaries have been facilitating 1031 exchanges throughout Minnesota for nearly 20 years. Call us today to start your 1031 exchange –877.373.1031.