Hot Commercial Real Estate Trends in 2022

Many people are interested in getting into the business of real estate investing because they see it as a sane place to invest their money. They don’t want to be subject to the whims of the stock market going up and down. Instead, they want a more stable investment opportunity. In this article, we are going to discuss a couple of hot investment trends we’re seeing in the commercial real estate industry.

The Housing Hack

What we see in this marketplace right now is a huge amount of interest in what we call the “housing hack.” Young entrepreneurial Millennials are figuring out that they need to start preparing for their future by building their wealth in real estate. To that end, many young investors are looking for duplexes, tri-plexes, or four-plexes that they can owner/occupy a portion of and rent out the rest. They’re getting into the business of real estate like so many past generations.

VRBO & AirBnB

Another trend we are seeing lately are people looking for VRBO / AirBnb type investments. Investors are looking for opportunities to purchase investment or business real estate in desirable vacation areas of the state of Minnesota.

CPEC1031, LLC

If you’re looking to defer capital gains taxes on the sale of investment real estate, a 1031 exchange may be right for you. At CPEC1031, LLC we have more than twenty years of experience facilitating like-kind exchanges of all shapes and sizes. We can help you through all the details of your exchange. Contact us at our 1031 exchange offices in downtown Minneapolis today to learn more about our services and how we can help with your next 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.

© 2022 Copyright Jeffrey R. Peterson All Rights Reserved

Here’s What You Need to Start a 1031 Exchange

Exchanging property under section 1031 of the Internal Revenue Code can lead to significant tax deferral when done correctly. However, many taxpayers who want to do a 1031 exchange don’t know where to start. In this article, we’re going to talk about the process of getting a 1031 exchange started, and the information you need to gather before you begin the process.

Initial Information

The first thing you need to do is gather some initial information that you can send to your qualified intermediary in order to begin the process. Here’s some initial information you should get together:

• Your contact info – name, DOB, phone, etc.

• Relinquished property info – projected closing date, value / debt / equity of the property, how you hold title to the property, the original purchase price, etc.

• Replacement property into – how you plan to take title to your new replacement property, the amount / type of debt on the new replacement property, etc.

This is just the tip of the iceberg, but this information will be enough to get the ball rolling. Your qualified intermediary will work with you throughout the exchange and request additional information when needed.

1031 Exchange Property

With a 1031 exchange, you can defer your capital gains taxes when you sell a piece of real property. This can really add up and result in a significant amount of tax savings when selling real estate. But 1031 exchanges aren’t as easy as many taxpayers think. We’ve seen many taxpayers go into an exchange without the necessary preparation, only to have their exchanges fail. That’s why it’s essential to work with a qualified intermediary who can advise you, prepare your documents, and walk you through each step of the exchange process. Contact us today to speak with our 1031 exchange intermediaries about your 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

Can you Conduct a 1031 Exchange after You’ve Sold Your Property?

We talk a lot about the timing requirements of a 1031 exchange, but many taxpayers are unaware of the specific timing rules that govern 1031 exchanges of real estate. In this article, we are going to talk about the timeline restrictions of a 1031 exchange – specifically whether or not you can conduct a 1031 exchange after you’ve sold your relinquished property.

Time Restrictions

The time restrictions you need to keep in the back of your head during any 1031 exchange are the 180 day exchange period and the 45 day identification period. The 180 day exchange period is the total time you have to complete your like-kind exchange – from the sale of your relinquished property to the purchase of your replacement property. The identification period consists of the first 45 days of the overarching exchange period.

Selling Your Relinquished Property

If you have already closed on the sale of your property you may have already received the sales proceeds and recognized gain on the sale. At this point, there’s not much that can be done, unfortunately.

Preparation is key in any 1031 exchange. Before you even think about selling your relinquished property you should consider your options and see if a 1031 exchange is right for you. Work with a qualified intermediary well before you are ready to sell your relinquished property so they can help you prepare accordingly and make sure all of your bases are covered.

Capital Gains Tax Deferral

CPEC1031 has twenty years of experience helping taxpayers in all sectors defer their capital gains taxes when selling real estate. If you have questions about 1031 exchanges or you’re interested in starting your own exchange, our intermediaries are on hand now to address all your concerns. Contact us today to speak with one of our team members about your real property exchange. We office in downtown Minneapolis but work with clients across Minnesota, as well as other states around the country.

• 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved

3 Signs that Your Property Does Not Qualify for 1031 Exchange Treatment

Before you even think about starting a 1031 exchange, you have to first determine whether or not your property even qualifies. The basic rule of thumb is that all 1031 exchange property must be held for investment or business purposes. Additionally, only real property may qualify for 1031 exchange – personal property need not apply. In this article, we are going to talk about a few signs that indicate that your property does not qualify for 1031 exchange treatment.

You Live in Your Property

If you are living in your property as a primary residence, it will likely not meet the qualified use requirement for 1031 treatment. The IRS limits 1031 exchanges to investment property only so your family home that you currently live in will not qualify.

Your Property is not Real Estate

As mentioned above, 1031 exchanges currently only apply to real estate. If you’re trying to exchange items of personal property, you will not be able to do so in a 1031 transaction. This is a fairly recent change brought on by the Tax Cuts and Jobs Act.

Your Property is Used as a Vacation Rental

Vacation rental properties may qualify for 1031 treatment, but they have to meet pretty strict barriers. Learn more about vacation property 1031 exchanges here.

Sell Your Investment Property in a 1031 Exchange

1031 exchanges offer great benefits to big and small investors alike. When structured correctly, a 1031 exchange offers you the ability to defer your capital gains taxes on the sale of real estate, so long as you reinvest your net proceeds into a bigger replacement property. There are a lot of requirements you have to meet in order to complete a successful exchange and working with a qualified intermediary is the best way to cover your bases. Contact us today to learn more about our 1031 exchange services and how we can help you achieve your investment goals.

• 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange vs. Traditional Sale

When you are looking to sell real estate, you have a few options at your disposal. In this article, we are going to look at the differences between a 1031 exchange and a traditional sale – and the various benefits of each.

Traditional Real Estate Sale

In a traditional sale of real estate, the seller is paid the sales price of the property and is responsible for paying capital gains taxes on the net proceeds from the sale. This can add up to a sizable tax bill and even deter people from selling their real estate at all.

1031 Exchange of Real Estate

A 1031 exchange allows the owner of real estate to defer these capital gains taxes by moving their net proceeds into a replacement property. This keeps your money working for you in a continued investment and helps you circumvent a potentially huge tax burden.

But remember, not all real estate can be used in a 1031 transaction. Only real estate that is held for investment or business purposes are eligible. That means you personal home or primary residence does not qualify.

Minnesota 1031 Exchange Company

CPEC1031 is a Minnesota-based 1031 exchange facilitator. We work with clients across the United States and help them defer their capital gains taxes when selling real estate. Our qualified intermediaries can help prepare all of your required documents, advise you on replacement properties, and answer any questions you have along the way. Reach out to our 1031 exchange professionals today to learn more about our like-kind exchange services and how we can help you save money on taxes.

• 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved