1031 Exchange Training
Have you ever heard of a 1031 exchange? A 1031 exchange is a tax-deferred exchange of investment or business properties. It allows investors to sell an investment or business property and reinvest the proceeds from the sale into a new investment or business property, without having to pay capital gains taxes on the transaction.
If you're thinking of selling an investment or business property, a 1031 exchange may be a good option for you. Here's what you need to know about 1031 exchanges and how they work.
To qualify for a 1031 exchange, the property that you sell must be held for investment or business purposes. You must also reinvest the proceeds from the sale into a new investment or business property. The new property must be "like-kind" to the property that was sold. This means that the new property must be of the same type, such as a single-family home, commercial office building, or agricultural land.
The exchange must also be completed within a certain time frame. You must identify the new property that you want to purchase within 45 days of selling the old property. The purchase of the new property must be completed within 180 days of selling the old property.
If you meet all of the requirements for a 1031 exchange, you can defer paying capital gains taxes on the sale of your investment or business property. This can save you a significant amount of money, especially if you're in a high tax bracket.
If you have any questions about 1031 exchanges, be sure to speak with a qualified tax professional. They can help you determine if an exchange is right for you and guide you through the process.
We're not going to sugar coat it- 1031 exchanges are tough processes and complex to fully wrap your head around. Luckily at BHG we gave a training to our agents on all things 1031 exchange! Watch our FULL, FREE on our YouTube below!