Our 1031 improvement exchange services allow investors to enhance the value of their next property and avoid the capital gains tax.
1031 exchanges are a challenging task to accomplish because the IRS has strict rules and regulations that can impact the validity of your transaction and increase the likelihood of having to pay the capital gains tax. One of the biggest regulations is the like-kind rule, which dictates that the replacement property’s value should be as much or greater than the sale price of the relinquished investment.
So what are your options if the cost of your next investment is lower than the relinquished property’s value? A 1031 improvement exchange allows you to make the necessary renovations and repairs to a property to enhance its value and meet stringent IRS regulations. However, this is a difficult strategy with a tight timeline. Partnering with a reputable qualified intermediary prevents delays and mistakes from impacting your exchange. The 1031 Exchange Intermediaries team has over three decades of experience with property improvement exchanges and leverages that knowledge to create a stress-free experience and reduce your tax liability.
A 1031 improvement exchange is an effective strategy if you want to improve the property value of your next investment while avoiding the capital gains tax. This property improvement method allows you to perform the following tasks:
Some of the potential improvements that you can make include drywall, paint, plumbing, and HVAC. These components then become part of the property, increase its value, and allow you to execute a tax-deferred exchange.
The capital gains tax can consume as much as 20% of the money you earn from selling your investment property. Contact 1031 Exchange Intermediaries today for a free consultation and start maximizing your return.
Executing a 1031 exchange without a qualified intermediary is challenging because there are strict timelines that must be followed. The property that you’re purchasing must be identified within 45 days of relinquishing your initial investment, and the renovations must be completed within 180 days. Any delays could impact your transaction and put you in a position where you have to pay the capital gains tax. The 1031 Exchange Intermediaries team believes you should keep more of what you earn and leverages our three decades of experience to provide a seamless process that maximizes your return. Our attention to detail eliminates mistakes and prevents the IRS from challenging your exchange.
With concrete timelines and rules that you must follow, partnering with a reputable qualified intermediary helps ensure your 1031 improvement exchange is on time and successful. The 1031 Exchange Intermediaries team works with clients to provide guidance and assistance for a stress-free experience. Our experts use an end-to-end process that handles all elements of an exchange.
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