Why You Should Consider a 1031 for Your Business Beneficial
While running a small business can be rewarding, it is also 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. Buying and selling property is usually quite costly and using the 1031 exchanges, you’re going to save a lot of money while performing the transactions. In this article, you will discover more about some of the benefits of 1031 exchanges.
The IRS 1031 exchange was created by the Congress to allow business owners to defer their tax payment when the money which they gain from selling or buying property is reinvested in a similar property. With this, business owners can save a lot of money and foster many positive economic changes in the community. As you probably know, it is only various types of properties that are eligible for the 1031 tax exchange. For instance, when you by a Mercedes after selling your office building, this will disqualify you from enjoying the benefits of the IRS 1031 tax exchanges. You’ll find that even when the properties that you deal with are not going to be exact, you’re going to be eligible for the tax exchanges when the property can be utilized for productive uses.
The 1031 process should be undertaken within 180 days or else you’re going to forfeit the tax benefits. The IRS will allow you about 45 days to identify a new property to purchase after selling your property. 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.
When you are applying for the IRS 1031 exchange, you will benefit a lot from working with a qualified intermediary. Contracting the services of a qualified intermediary to help you in the 1031 exchange process will ensure that your proposals are going to qualify for the tax deferral. 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.