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. 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. This article is going to provide you with more information about what is beneficial to use the 1031 IRS 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. Due to the IRS 1031 exchange, businesses can save a lot of money that can be pumped in improving the economic conditions of the community. You’ll find that there are specific kinds of properties that are going to qualify for the 1031 tax exchanges. 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. 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. Upon selling your property, you’ll be given a 45 days windows to have identified the new property that you’re going to buy. 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 essential for you to seek the services of a qualified intermediary that you will be trustworthy and also offer you friendly rates. If you want to learn more about the IRS 1031 exchanges, be sure to click here now.