Exchange Your Real Estate to Mineral rights

1031 investment options

There are numerous variables to consider mineral rights as your next business venture to invest in. Perhaps you know a little bit of it, but here today will disclose a little-known fact that everyone is not aware of. This is less talked about; Ten31 Minerals from Oklahoma City takes this responsibility to keep it in front of you.

You can turn your real estate property right to mineral rights and help there are 1031 investment options. This is known as a like-kind exchange. Here you can swap your real estate with mineral rights and you will be on benefits. At that time, your property will not be recognized as capital gain and you will not have to pay tax until a certain period.

1031 investment options

What you can exchange? You can exchange your real estate property, commercial centers or ranches. Suppose you are thinking to sell your real estate property, we can make a lucrative option for you in terms of investment in mineral rights. Instead of depositing the money in a bank, you can use your money for a better earning and a higher profit. There is no limit literally on how many you can use 1031 investment options or this exchange policy, so technically in Oklahoma City or wherever in the United States, you can use this option as many times as you want. You only have to pay taxes if you decide to encash and sale the right years down the road other than investing in any other like-kind property. When you are about to sell the property, it could be a long-term capital gain rate as long as the property was under a hold for over a year and that is below the regular tax rate.

There are some exceptions also, let’s make it clear:

  1. You cannot swap any personal property. For an example, you cannot put your home in a trade where you live in for mineral rights or for use 1031 investment options. However, you have the provision of swapping a piece of land for mineral rights.

  2. IRS has a predetermined policy mentioning the timeline for nontaxable events. Both the parties should identify the replaced property within 45 days and should close the old property within 180 days of sale.

  3. If a property is exchanged as a depreciable property, the gain will be known as depreciation recapture. This would be granted as ordinary income.

1031 investment options

For any assistance, you can call Ten31 Minerals and it would be better to hire a third party to illustrate everything. There will be no chance of being conned on by anyone.