Want To Sell Business Property And Use A 1031 Exchange?
Why would you choose a 1031 exchange if you are planning on selling and buying business or investment assets? Because it allows you to defer taxes on capital gains or depreciation recapture.
Why would a business owner want to exchange out of his or her current business-use property?
Find a better location to serve clients
Expand the number of locations (sell one location and buy multiple locations)
Relocate company Headquarters to an updated facility
Consolidate locations or buy a smaller building that reduces space and cost
Generate More Income
Exchange business-use property for another type of investment property that generates more income. Consider revenue-producing commercial property such as strip centers or office buildings. Click here to learn about the various types of commercial properties that apply for 1031 exchanges.
Free up cash. After a 1031 exchange, consider refinancing the asset. Reinvest all equity and cash into the new property after a 1031 exchange for this option.
EXIT STRATEGY FOR BUSINESS OWNER
Retiring business owners can sell their real estate for a rental home or condo. Use the acquired property for a vacation rental. After a few years have passed, the owner can convert the property into their residence or a second home.
Reduce management obligations. Exchange into more easily managed properties. These properties can include land, triple-net investments, or Delaware Statutory Trusts (DSTs).
Use a 1031 exchange as an estate planning tool. Any 1031 exchange property transfers to your heirs upon your passing. The property transfers on a stepped-up basis. The IRS forgives all capital gains and depreciation taxes.
For additional and more detailed information about 1031 exchanges, call
Granite Exchange today at 800-899-6959.
Our Certified Exchange Specialists® (CES®) can explain the process and guide you through every step of the exchange to ensure that the exchange is done properly.