Section 1031 of the Internal Revenue Code has been around for many decades and taxpayers have been availing themselves of the benefits of the 1031 exchange for just as long. But with the recent tax law, many people want to know if 2022 is a good year to conduct a 1031 exchange. In this article, we’re going to discuss whether or not it’s a good time to do a 1031 real estate exchange in 2022.
Conducting a 1031 Exchange in 2022
Whether or not you should do a 1031 exchange is heavily dependent on your particular situation, property, and goals. It’s always a good idea to discuss the potential of exchanging your property with a qualified intermediary to determine if you are a good candidate.
That being said, 2022 is a great year to conduct a 1031 exchange! Some taxpayers have been concerned that 1031 exchanges would be severely limited by President Biden’s Build Back Better Plan. Thankfully, that has not happened. As a result, investors big and small can continue to reap the benefits of the 1031 exchange when selling real estate.
Like-Kind Real Estate Exchange Company
If you’re thinking of selling real estate, but are concerned about the capital gains taxes of the sale, a 1031 exchange may be the best option for you! By moving all of your net proceeds into a new replacement property, a like-kind exchange allows you to defer your capital gains taxes and keep your money compounding and building over time. At Commercial Partners, our qualified intermediaries have been assisting clients with like-kind exchanges for decades. Contact us today to see if a 1031 exchange is right for you!