You’ll find that running of a small business is usually rewarding but can be 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. 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. As you probably know, it is only various types of properties that are eligible for the 1031 tax exchange. 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. You’ll find that even when the properties that you deal with are not going to be exact, you’re going to be eligible for the tax exchanges when the property can be utilized for productive uses.
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. The IRS will allow you about 45 days to identify a new property to purchase after selling your property. 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.
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. 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.