1031 exchanges are a powerful tax-saving tool within the internal revenue code. These exchanges are available to all taxpayers within the United States. Contact our Michigan 1031 exchange professionals today to see how a 1031 exchange can benefit you – 877.373.1031.
Deferring Tax with a 1031 Exchange
The 1031 exchange is a vehicle which exists within the Internal Revenue Code that allows taxpayers to defer the capital gains taxes on the sale of real property. Rather than receive your sales proceeds and pay the required taxes, a 1031 exchange allows you to move all of those net proceeds over into a replacement property and defer the taxes.
There are a few important rules to keep in mind when considering a 1031 exchange. First of all, you only have 180 days to complete your exchange. That clock starts ticking immediately after the sale of your relinquished property. The first 45 days of that time period is set aside for identifying the replacement property into which you plan on exchanging. Second, you need to have held your property for investment of business purposes – property held for personal use is excluded from 1031 exchange treatment. Finally, your property needs to be like-kind in order to be considered for 1031 treatment. Learn more about the 1031 exchange like-kind requirement by watching the video below:
Michigan 1031 Exchange Company
There are a lot of rules and regulations that govern the like-kind exchange, but it can be a very beneficial vehicle for saving taxes on the sale of real estate and personal property. It’s important to talk with a skilled qualified intermediary before starting your exchange. Contact one of our Michigan 1031 exchange professionals today to start your like-kind exchange and defer your taxes on the sale of real property – 877.373.1031.