Videos

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Video – The 1031 Exchange 45-Day Identification Period Rules and Exceptions

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In a 1031 exchange, can you change your identification of replacement property after the passing of the 45th day of the identification period? The general answer is no. You compute the day of closing on your relinquished property as day zero and count 45 days thereafter – that’s your identification period. By midnight of the 45th day you need to have made your identification of replacement property.

The only exception to that general rule is if you’re impacted by a federally declared disaster, in which case you may be eligible for an extension under Rev. Proc. 2018-58. You need to work with your tax advisor to determine if you are actually eligible for this special exemption because generally the IRS has created these guidelines to limit the number of people completing 1031 exchanges.

Find A Qualified Intermediary For Your Next Like-Kind Exchange

If you are searching for a qualified intermediary to help with your next like-mind exchange, look no further! The intermediaries at CPEC1031, LLC have more than twenty years of experience in the 1031 exchange industry. We can help you through every aspect of the 1031 exchange process, from document preparation, to replacement property selection, to closing and reporting. Reach out to us today to learn more about the 1031 exchange services we provide and see how we can help you through the ins and outs of your next 1031 exchange 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 – The 1031 Exchange Timeline, Explained

The date of the closing of your relinquished property is day zero for computing both the 45 day identification period deadline and the 180 day exchange period deadline. You have to submit your property identification by midnight of the 45th day, and you must complete the purchase of your replacement properties by the 180th day.

1031 Exchange Tips and Resources

If you’re looking for 1031 exchange tips and resources, you’ve come to the right place! CPEC1031, LLC is your one-stop-shop for all things 1031 exchange. For more than two decades, we have been providing qualified intermediary services to clients throughout the state of Minnesota and across the country. We have extensive experience facilitating forward exchanges, reverse exchanges, and built-to-suit exchanges. Let us put our experience to work on your next like-kind exchange of real estate. With our help, you can defer 100% of your capital gains taxes when selling qualifying real estate under section 1031 of the Internal Revenue Code.

  • 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 – The Importance of Involving a CPA When Dealing with 1031 Exchanges Involving LLCs

When conducting a 1031 exchange that involves an LLC, it’s important to involve your CPA or accountant. You need to look at the operating agreement, contribution agreement, and tax returns for the previous years and talk to your accountant to diagnose if this is really a disregarded entity. On top of that, you need to determine whether you’re in a community property state (like Wisconsin, Texas, or California), or if you’re in an equitable property state (like Minnesota, Iowa, or the Dakotas). In community property states, a husband and wife filing a joint tax return can be construed as a single member, even though they’re two separate human beings. An LLC owned by two married people filing a joint tax return in a community property state will be treated (generally) as if it was a single member disregarded sole proprietorship.

Start The Exchange & Defer Your Capital Gains Tax Burden

Start your 1031 exchange of real estate and defer your capital gains tax burden when selling real estate held for investment or business purposes. CPEC1031, LLC works with taxpayers conducting all kinds of 1031 exchanges – from forward exchanges, to reverse exchanges, to construction exchanges. Our intermediaries have decades of experience working with clients from across the United States on their 1031 exchanges. Let us help you through the details of your next like-kind exchange! Contact us at our primary 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – The Drop and Swap Option When a Partnership or LLC is Involved in a 1031 Exchange

When selling property owned by an LLC or partnership, you have a couple of options. One such option is the “drop and swap” in which you take all the former partners and redeem them out of the partnership with a liquidating distribution by giving them a deed to their proportionate share of the underlying real estate. Then when the sale takes place, you’ll have multiple co-sellers, each selling their own fractional interest in the real estate. Each co-seller can take their proportionate share of the proceeds and potentially do a 1031 exchange or take the money and pay the taxes. The important thing is that they’re not conjoined under the banner of an entity any longer because you’ve distributed the real estate out of the entity.

Find a Qualified Intermediary Near You

Contact a qualified intermediary near you to start your 1031 exchange today and start deferring capital gains taxes when selling investment real estate. Section 1031 is a powerful provision that’s been built into the tax code. Any US taxpayer can use it to defer capital gains taxes on the sale of investment or business real estate. Reach out to a qualified intermediary at CPEC1031, LLC today to learn more about the 1031 exchange process and get started with your next exchange. You can find us 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – 1031 Exchange Rules for Identification of Real Property

When you identify your replacement property in a 1031 exchange, you have three basic options:

  • You can use the three property rule that allows you to identify any three (or fewer) properties, regardless of their value. For example, you could identify the Sears Tower in Chicago, the IDS Tower in Minneapolis, and the Mall of America in Bloomington. Those are three distinct properties.

  • You can use the 200% rule, which allows you to list any number of properties in your identification. However, the value of all those identified properties cannot exceed twice the value of what you relinquished. Let’s say your relinquished property sold for $10 million. Under this rule, you could identify properties worth a total of up to $20 million. The problem with the 200% rule is that value is subjective. If you want to list the Foshay Tower in Minneapolis as a replacement property, how do you know how much it’s worth if you don’t have a contract price negotiated?

  • You can use the 95% rule. Under this rule you can list more than three properties and more than 200% in value, but you must purchase and actually receive 95% of all those identified properties.

Anything that you purchase and receive within the 45 day period will be considered identified by virtue of you having closed on it. So you don’t need to make a written identification if you’ve closed on the property within that 45 day period.

Don’t Miss Out on Capital Gains Tax Savings – Consider a 1031 Exchange!

If you’re selling investment real estate, don’t miss out on the capital gains tax savings offered by a 1031 exchange! Anyone can do a 1031 exchange so long as they hold qualifying real property. Work with a 1031 intermediary at CPEC1031, LLC to acquaint yourself with the like-kind exchange process and see if your property is a good candidate for 1031 treatment. We have over two decades of experience in the 1031 exchange industry and can help you defer your capital gains taxes in a like-kind exchange transaction. Contact us today at our Twin Cities office to get started!

  • 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.