How to Integrate 1031 Exchanges Into Retirement Planning

Retirement doesn’t have to mean stepping away from real estate, but it might mean repositioning your real estate. As retirement approaches, many investors look to reduce management responsibilities, create predictable income, and preserve wealth. A 1031 exchange can help you accomplish all of these goals.

With the right 1031 exchange strategy, your properties can shift from hands-on management to passive, income-focused assets without triggering unnecessary taxes.

Reposition Your Real Estate with a 1031 Exchange

1031 exchanges can help reposition real estate into a variety of alternatives, such as:

• Passive DST (Delaware Statutory Trust) Investments

• Triple-Net (NNN) Leased Properties

• Real Estate Investment Trusts (REITs)

These types of investment properties can take the burden off of your shoulders as you entire into your retirement years, all while deferring your capital gains tax burden. That’s why so many real estate investors consider like-kind exchanges as they approach retirement. If you’re interested in setting yourself up for a management-free retirement, talk to a qualified intermediary today about the 1031 exchange process and see if it’s an option for you.

Defer Capital Gains Taxes on the Sale of Investment or Business Property

With a 1031 exchange, you can defer your capital gains taxes when you sell like-kind property that’s held for investment or business purposes. The catch is that you must reinvest your sales proceeds into a like-kind replacement property to continue your investment. A qualified intermediary from CPEC1031, LLC can help guide you through the 1031 exchange process, making sure you hit all the necessary benchmarks. Contact our qualified intermediaries today at our Twin Cities office, located in downtown Minneapolis.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Considering a 1031 Exchange in 2026? Here are Some Essential Tips for Planning Ahead

Successful 1031 exchanges involved planning ahead to avoid the pressure of strict deadlines. In this article, we are going to run through some pro tips for planning ahead to set your 1031 exchange up for success.

Planning Early Keeps You in Control

The most successful 1031 exchanges are not figured out under deadline pressure. They are shaped months in advance, before the clock starts ticking. Once the 45-day identification window opens, strategy will give way to speed.

Assemble Your 1031 Exchange Team

To ensure the success of your 1031 exchange, you need to assemble a great 1031 exchange team. This team often includes:

• Qualified Intermediary

• Legal Counsel

• Banker

• Accountant / Tax Advisor

• Real Estate Agent

• Title / Escrow Agent

Bring Clarity to Your Deal

• Estimate your sale price and transaction costs.

• Determine outstanding loan balance and payoff terms.

• Figure out the net equity expected to reinvest.

• Estimate your capital gain and depreciation recapture.

• Plan ahead for debt replacement.

1031 Exchange Pro Tips

• Plan ahead and consult with your tax advisor, CPTA, and qualified intermediary.

• Confirm your written notice (Replacement Property Identification Form) is received on time to your qualified intermediary.

• Consider identifying “in the alternative” by listing Property A or B, not both.

• Lock up a replacement property early by getting it under contract for purchase, or purchasing the property in a reverse exchange.

Your 1031 exchange success depends on following the rules and working with a qualified intermediary who knows the rules inside and out.

Contact a Qualified Intermediary at CPEC1031, LLC

Get started with your 1031 exchange by contacting a qualified intermediary at CPEC1031, LLC. Our team has over two decades of experience working on forward exchanges, reverse exchanges, and build-to-suit exchanges under section 1031 of the Internal Revenue Code. We have all the skills and experience needed to facilitate your transaction and ensure that you can defer 100% of your capital gains tax burden when selling qualifying real estate. Contact us today to learn more about our array of services and see if you are a good candidate for 1031 exchange!

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Identify 1031 Exchange Replacement Property Options Early in the Process

Replacement property identification is one of the most important aspects of any 1031 exchange and it’s a potential trap for the unwary. In this article, we are going to offer up a few tips for identifying replacement property options early in the 1031 exchange process.

Deadlines to Remember

Remember – Two dates drive every 1031 exchange:

1. 45 Day Identification Period. You have 45 days to identify replacement property after you sell your relinquished property.

2. 180 Day Exchange Period. You have 180 days total to complete the exchange (or your tax return due date, including extensions, whichever comes first).

Do not wait until closing to start searching for replacement property. Consider Delaware Statutory Trusts (DSTs) as a potential alternative solution for timing, diversification, or passive ownership.

Bottom line: Do the work early and everything about your 1031 exchange becomes easier and more manageable.

1031 Exchange Help

If you are looking for help with your next 1031 exchange of real estate, contact the qualified intermediaries at CPEC1031, LLC today. Our team can help you through the ins and outs of your like-kind exchange of qualifying real property. Don’t get tripped up by all the details involved in a 1031 exchange. Work with a skilled intermediary to ensure you can defer 100% of your capital gains tax burden. Our intermediaries have more than two decades of experience facilitating 1031 exchanges of all shapes and sizes. Let us help you through the details of your next exchange.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Video – Potential Problems in a 1031 Exchange

In a 1031 exchange, you don’t want to buy down in value because then you aren’t continuing your investment into a property of equivalent or greater value.

You also want to avoid taking cash or other non-like-kind property during a 1031 exchange. Let’s say someone wants to buy your $20 million property that you own free and clear, but they’re having a hard time getting financing so they ask if you’ll entertain a contract for deed where they give you $2 million down and $18 million over time.

If you want to do a 1031 exchange you need to buy a property of equal or greater value and equity. If you sell on a contract for deed, you might be shooting yourself in the foot on the ability to do a 1031 exchange. In year one of an installment sale, you get to trigger all of the depreciation recapture. If you took that contract for deed deal, by the time you’re done paying your real estate commissions and recaptured depreciation, your downstroke may be gone. Don’t do seller-backed financing if you want to do a 1031 exchange.

Another potential 1031 problem is not adequately offsetting debt relief. When you sell your relinquished property, they pay off the old mortgage. In order to completely defer your gains in a 1031 exchange, you are expected to acquire a property of equivalent or greater value, equity, and debt. There are two ways to approach this debt relief issue:

1. Take out a new mortgage on the replacement property.

2. Bring cash to the closing table to offset the debt.

Most people opt for option one because they don’t have sufficient cash on hand.

Many people fail to consider the debt offset element in a 1031 exchange and that makes it much more difficult to defer 100% of the capital gains taxes.

Section 1031 – A Tax-Saving Tool

Section 1031 is a powerful provision in the tax code that allows you to save money when selling investment or business real estate. Find out if a 1031 exchange is a good fit for your property by contacting a 1031 exchange company like CPEC1031, LLC. Our qualified intermediaries have more than twenty years of experience in the 1031 exchange industry. We can walk you through the entire process from beginning to end and make sure you hit all the necessary deadlines and benchmarks along the way.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Who Is Responsible for the Replacement Property While Its Being Held in a Reverse 1031 Exchange?

In a reverse 1031 exchange, you acquire your replacement property first and park with an Exchange Accommodation Titleholder owned by your 1031 exchange company.

When the EAT (Exchange Accommodation Titleholder) that’s owned by the 1031 exchange company buys the replacement property, the exchange company doesn’t want to have anything to do with the property other than holding the bare legal title.

In order to fulfill the responsibilities of ownership, the exchange company often enters into a Triple Net Lease (or management agreement) wherein they lease the property to the taxpayer conducting the exchange for a nominal amount for the length of the exchange period (180 days). Through that master lease, the 1031 exchange taxpayer then controls the property. That means the 1031 taxpayer is also responsible for the taxes, debt service, insurance, and caring costs associated with the property throughout the 1031 exchange process.

Like-Kind Exchange Services

At CPEC1031, LLC we offer like-kind exchange services to taxpayers who own property throughout the United States. No matter where your property is located, we can help you defer your capital gains tax burden when selling qualifying real estate. Reach out to the skilled 1031 intermediaries at CPEC1031, LLC today to discuss the details of your exchange and make sure you are able to defer 100% of your capital gains taxes. You can contact us at our Minneapolis office to set up a time to speak.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved