A Brief History of
Top Benefits of a 1031 for Your Business
Despite running a small business being rewarding, it is also important to note that it is tricky. For business owners, it is important to take advantage of the opportunities that are presented to your business. 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. If you have some understanding of the 1031 exchanges, then you should be good to go when selling or purchasing your property because it is going to enable you save money. 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. You’ll find that for example if you sell your office building to buy your vehicle, you will not be eligible to the benefits offered by the IRS 1031 tax exchanges. When you however engage in properties that can be put into productive use, you will be eligible even if the properties are not exactly the same.
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. You will benefit a lot with the IRS 1031 exchange from knowing in advance about the property that you’re going to buy before you even sell your property.
When you are applying for the IRS 1031 exchange, you will benefit a lot from working with a qualified intermediary. 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. Ensure that you work with a qualified intermediary that is not only trustworthy, but also cost friendly. To discover more about the IRS 1031 exchanges, ensure that you check out this page.