Despite running a small business being rewarding, it is also important to note that it is tricky. It is essential for business owners to ensure that they take advantage of all the opportunities that they get. Engaging in continuous education is important and it is also important to ensure that you are aware of the IRS 1031 exchange in case you intend to sell or buy part of the properties in your business. You will be happy to know that it is possible to make savings on your money while buying or selling property when you understand the 1031 exchanges. By reading this article, you’re going to find out more about some of the top benefits of a 1031 exchange.
It is important to note that the Congress came up with the IRS 1031 exchange to help owners of businesses to defer paying your taxes as long as the money which they gain from the transaction is used to invest in another property that is related. With this, business owners can save a lot of money and foster many positive economic changes in the community. You’ll find that there are specific kinds of properties that are going to qualify for the 1031 tax exchanges. For example, a person that sells the office building to buy a Mercedes will not enjoy the benefits of the 1031 tax exchanges. The good thing about the IRS 1031 exchange is that even when the property that you purchase is not similar but productive, you may also qualify for the tax benefits.
The 1031 process should be undertaken within 180 days or else you’re going to forfeit the tax benefits. When you have sold your property, you will only have about 45 days to identify the other property that you intend to purchase. It would be useful for you to know the property that you want to purchase prior to selling your property if you want to enjoy the benefits of the 1031 tax exchanges.
It is advisable for you to ensure that you work with a qualified intermediary when you are applying for the 1031 exchange. You’ll be happy to know that bringing on board a qualified intermediary is going to be useful to you during the process of the 1031 exchange because they will help you develop high-quality proposals that will qualify you for tax deferments. It is highly recommended for you to ensure that you seek the services of a qualified intermediary that will offer you the best prices and is trustworthy. Visit the website of this company so that you can discover more about the IRS 1031 exchanges.
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