Top Benefits of a 1031 for Your Business
You’ll find that running of a small business is usually rewarding but can be tricky. If you are a business owner, you should consider utilizing the opportunities that come your way. 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. By reading this article, you’re going to find out more about some of the top benefits of a 1031 exchange.
With the IRS 1031 exchange that was formulated by the Congress, a business owner can do for paying taxes when the money that they have gained from a certain transaction is utilized to invests in another property that is similar. 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. 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.
It is important to ensure that you complete the 1031 process within 180 days so that you do not forfeit the benefits that it offers. Upon selling your property, you’ll be given a 45 days windows to have identified the new property that you’re going to buy. You should therefore ensure that you know the property that you want to buy before selling your property so that to receive the benefits of the 1031 exchange.
During the application of the IRS 1031 exchange, it is a good idea to use the services of 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 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. To discover more about the IRS 1031 exchanges, ensure that you check out this page.