RSVP For Our Upcoming 1031 Exchange Workshop

BASIC NUTS AND BOLTS OF I.R.C. SECTION 1031

Come learn all about the basics of I.R.C. Section 1031 in a fun and interactive workshop!

Join us for an informative event where we dive into the basics of I.R.C. Section 1031. Learn all about the ins and outs of like-kind exchanges and how they can benefit your investments. Whether you're a seasoned investor or just starting out, this event is perfect for anyone looking to expand their knowledge in this area.

  • When: Thursday, April 24, 2025, 9:30AM - 11:30AM (9:00 AM - Check in & Networking)

  • Where: 12 Elton Hills Dr NW, Rochester, MN 55901-3538

Earn 2 Hours of Continuing Education (CE) Credit: Approved by the Minnesota Department of Commerce – Standard Real Estate Credits

Don't miss out on this opportunity to gain valuable insights and network with other professionals in the field!

Seating is limited. Be sure to reserve your spot by RSVPing via the link below:

1031 Exchange Resources

The qualified intermediaries at CPEC1031, LLC are your go-to resource for all things related to like-kind exchanges of investment real property. With over twenty years of experience, our team is here to help you through all the steps of your next 1031 exchange. Let us help you defer capital gains taxes on the sale of real estate through section 1031 of the Internal Revenue Code. Our team has helped countless taxpayers successfully execute 1031 exchanges and we can help you! Reach out to us today to set up a time to chat with a qualified intermediary near you!

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Reasons to Seriously Consider a 1031 Exchange in 2025

There are many excellent reasons to conduct a 1031 exchange of investment real estate, but many taxpayers are unaware of these benefits. In this article, we are going to outline a couple reasons to consider a 1031 exchange in the year 2025.

Defer Your Capital Gains Tax Burden

The biggest benefit of a 1031 exchange is capital gains tax deferral. When you sell a piece of investment real estate in a straight forward sale, you are likely going to be hit with a huge capital gains tax bill. In fact, this is something that prevents many taxpayers from selling their property at all. Section 1031 offers the excellent incentive of tax deferral when you reinvest the net proceeds into a replacement property.

Move to a Different Location

1031 exchange can be conducted between properties in any location within the bounds of the United States. You can exchange out of a property in Minnesota and into a property in Arizona, so long as you meet all the requirements of section 1031. This is a great way to set yourself up for a move to a different location, while deferring a large capital gains tax bill.

Minnesota-Based Qualified Intermediaries

At CPEC1031, LLC, our Minnesota-based qualified intermediaries are here to help you defer capital gains taxes using section 1031 of the Internal Revenue Code. This powerful tax provision can help you keep your hard-earned money working for you in a continuation of investment. The best part is that any US taxpayer can utilize section 1031 for tax deferral. Contact our 1031 professionals today at our downtown Minneapolis offices to learn more about the process and how we can help you save money on your next sale of investment real estate.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

 

Video – Alternative Products You can 1031 Exchange Into

Many people ask about the variety of different replacement property options that are available in a 1031 exchange and what exactly constitutes “like-kind” in the realm of real estate.

If you’re exchanging a duplex can you exchange into something completely different such as an oil and gas program? In fact there are 1031 compliant oil and gas programs that you can exchange into. There are also tenant-in-common arrangements that you can exchange into, as well as Delaware Statutory Trusts (DSTs), some of which convert into a 721 contribution of the underlying real estate into an UPREIT. So there’s a great variety of different products that you can 1031 exchange into.

One of the common themes with all of these options is that they are passive investments that allow you to work smarter, not harder.

1031 Exchange Services

A 1031 exchange is a powerful vehicle for tax-savings for owners of investment real estate. Under section 1031 of the Internal Revenue Code, you are allowed to defer capital gains taxes on the sale of qualifying real property when you reinvest your net proceeds into like-kind replacement property. Once you begin the process you must complete everything within 180 days so it’s important to adequately prepare. The best way to set yourself up for success is to coordinate with an experienced 1031 intermediary at CPEC1031, LLC.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video - 1031 Exchange Tips for Tax Season

If you recently completed a 1031 exchange and you need to report it to the IRS, you may need to assemble some information to allow your tax preparer to put together everything required to file your federal tax return.

Your tax preparer will need to fill out form 8824, which is essentially a worksheet that helps the IRS connect the dots between the properties that were sold and received during the 1031 exchange. This form requires a lot of information. Here’s some of the information you can assemble and provide to your taxpayer in advance of the tax filing deadline:

  • If you used a qualified intermediary, you may have received a closeout or summary letter that provides all of the critical dates and explains how your exchange funds were utilized.

  • As to the relinquished property, you can provide a pdf copy of the final signed closing statement that summarizes how the monies were spent.

  • Provide the deed or conveyance document that was used to convey the ownership of the property to the purchaser.

  • If you received a 1099-S, this is another great document to provide your tax preparer.

  • Once you sold your relinquished property, you may have identified your replacement property within the 45 day identification period. If you did, you’ll want to provide a copy of that identification form to your tax preparer together with proof that it was timely sent to the recipient.

  • When you closed on your replacement property, you probably had a closing statement showing the funds coming in, the purchase price, the closing date, and various transactional expenses. This is a great thing to provide your tax preparer as well.

  • Sometimes, mistakes happen during closings and they need to be corrected. If you received a corrected document after closing, that’s important to give to your accountant so they’re working with updated information.

1031 Exchange Help

CPEC1031, LLC offers qualified intermediary services for taxpayers considering a 1031 exchange of real estate. A like-kind exchange is a great way to defer capital gains taxes on the sale of real estate by continuing your investment into a bigger replacement property. In order to defer all of your gains, you need to abide by the rules set out by section 1031 of the Internal Revenue Code. Work with a qualified intermediary on your exchange to ensure that you meet all the required benchmarks. Reach out to the intermediaries at CPEC1031, LLC today to see if a 1031 exchange is right for you!

 

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – 1031 Exchanges Involving A Non-Titled Spouse

Let’s say you bought a property before marriage and you own it in your own individual name. Twenty years later it’s appreciated a lot in value. Now that you’re doing a 1031 exchange, how do you deal with the fact that your non-titled spouse may want to be on the title to the replacement property? The same taxpayer requirement says that the taxpayer that owns the relinquished property needs to acquire the replacement property. All of the exchange funds for that taxpayer need to be used exclusively to purchase that taxpayer’s interest in the replacement property.

This can be a tricky dynamic to deal with during a 1031 exchange. If you want your spouse to be in title with you, it may be best to add cash for that spouse’s proportionate share of the property because your exchange funds need to be used for your proportionate share of the purchase. This is also a question that can be complicated by whether or not you (or the property) reside in a community property state, such as Texas, Wisconsin, etc.

When you have these questions it’s good to surround yourself with a good accountant, attorney, and qualified intermediary.

Talk with a Qualified Intermediary

Talk with a qualified intermediary at CPEC1031, LLC today about your next 1031 exchange today. Our team of skilled intermediaries has been facilitating exchanges under section 1031 of the Internal Revenue Code for more than two decades. We can help you navigate the process and find the answers you’re looking for. Contact us today at our downtown Minneapolis offices to learn more.

  • Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

 

Defer the tax. MAXIMIZE your gain.