Top Benefits of a 1031 for Your Business
You’ll find that running of a small business is usually rewarding but can be tricky. It is essential for business owners to ensure that they take advantage of all the opportunities that they get. As a small business owner, it is essential to go for continuing education and you should also ensure that you get to understand the IRS 1031 whenever you plan to sell or purchase property 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. In this article, you will discover more about some of the benefits of 1031 exchanges.
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. Because of the money that businesses save while taking advantage of the IRS 1031 exchange, it means that they will be in a better position to foster economic growth in the community. You’ll find that there are specific kinds of properties that are going to qualify for the 1031 tax exchanges. 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. 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.
To ensure that you do not forfeit the tax benefits that are offered by the 1031 tax exchanges, it is important to undertake the whole process before 180 days. 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.
When you are applying for the IRS 1031 exchange, you will benefit a lot from working with a qualified intermediary. The good thing about using the services of a qualified intermediary throughout the process of your 1031 exchange is that you’re going to come up with proposals that will be eligible for deferring your tax payments. It is essential for you to seek the services of a qualified intermediary that you will be trustworthy and also offer you friendly rates. Visit the website of this company so that you can discover more about the IRS 1031 exchanges.
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