real estate

How to Reinvest Your Commercial Real Estate Returns

Reinvesting your real estate returns is easy with section 1031 of the Internal Revenue Code. In this article, we are going to offer up some tips for reinvesting your real estate returns using a 1031 exchange.

Defer Taxes

The beauty of a 1031 exchange is that, when done properly, you can defer your capital gains taxes by continually reinvesting the sales proceeds into new replacement property. This allows you to keep your money working for you in a continued investment, compounding wealth over time rather than cutting a check to the government.

Always Trade Up

One important thing to keep in mind when exchanging like-kind property is that you always want to trade up when it comes to your replacement property. That means your replacement property needs to be equal to or greater than your relinquished property in value, equity, and debt. In order to defer 100% of your gains, you need to be sure to satisfy these requirements.

Be Mindful of Your Timing

1031 exchanges are governed by strict time lines. Be sure you meet the necessary deadlines or your exchange will fail.

1031 Exchange Resources

If you need help with your 1031 exchange, let the professionals at CPEC1031 help. Our qualified intermediaries have two decades of experience assisting clients with their real estate exchanges under section 1031 of the Internal Revenue Code. We can help advise you throughout the process, prepare your documentation, and answer all of your questions. Contact us today at our downtown Minneapolis office to learn more about our services and get started with your very own 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

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The Difference Between Qualified Intermediaries & Real Estate Attorneys

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Real estate lawyers and qualified intermediaries play important roles in a 1031 exchange, but there are several important factors to consider in this regard. In this article, we are going to discuss the similarities and differences between qualified intermediaries and real estate attorneys in a 1031 exchange.

Related Parties

First and foremost, it’s important to note the related party’s exclusion in a 1031 exchange. Anyone who has been an agent or employee of the taxpayer conducting the 1031 exchange is not allowed to act as the qualified intermediary for said exchange. So any attorneys who have acted on your behalf or been in your employ during the past two years cannot act as your intermediary.

Two Separate, Essential Roles

Your qualified intermediary and your real estate attorney both play separate, yet essential roles in a 1031 exchange. Your real estate attorney should act as your attorney. Your intermediary, on the other hand, is supposed to act as a neutral third party in the exchange. Make sure to hire a 1031 exchange company that works exclusively in 1031 transactions.

Exchange Your Property with a 1031 

Defer your capital gains taxes on the sale of real estate today with a 1031 exchange. Anyone can conduct a 1031 exchange so long as certain requirements are met. Making sure you meet these technical requirements is essential to the success of your 1031 exchange. With two decades of experience, our intermediaries have the skills needed to manage your transaction from beginning to end. Give us a call today to talk about your 1031 exchange with one of our qualified intermediaries.

  • 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

4 Benefits to Consider with Your 1031 Exchange of Real Estate

There are many beneficial options to consider when exchanging property in a 1031 exchange transaction. In this article, we explain a few benefits to consider with your 1031 exchange of investment real estate.

1031 Exchange Potential Benefits

Below are four potential benefits of a 1031 exchange of investment real estate:

  • You can exchange out of a relinquished property in one geographic area, and into a replacement property in another geographic area, so long as both properties are within the United States.

  • You can 1031 exchange raw land for income-producing real property.

  • You can utilize a 1031 exchange to consolidate multiple properties into one property that is easier to manage.

  • You can 1031 exchange out of a management intensive property and into a property that has fewer management fees.

Each of these 1031 exchange options has its benefits. That being said, each 1031 exchange is different and should be treated as such. That’s where a qualified intermediary can help make your 1031 exchange a success. When you work with a qualified intermediary on your 1031 exchange, they can answer all of your questions throughout the exchange process.

Minnesota 1031 Exchange Company

CPEC1031, LLC is a Minnesota-based 1031 exchange company with over two decades of experience in the industry. Our team of qualified intermediaries can walk you through every step of your 1031 exchange, making sure you are fully prepared when it comes time to close. Contact us today at our downtown Minneapolis office to learn more about the full extent of our services and see how we can help you save money in capital gains taxes on the sale of 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.

© 2022 Copyright Jeffrey R. Peterson All Rights Reserved

3 Reasons to Do a 1031 Exchange of Investment Real Estate

1031 exchanges of investment real estate offer many benefits to taxpayers looking to sell real property. In this article, we are going to discuss a few of those benefits and talk about three reasons to do a 1031 exchange of investment real estate.

Defer Your Capital Gains Taxes

First and foremost, a 1031 exchange allows you to defer your capital gains tax burden when selling investment real estate. In a standard real estate sale, you need to pay capital gains taxes on the sales proceeds. This can be a hefty tax burden. A 1031 exchange allows you to defer that tax burden and avoid a potentially huge tax bill. In order to defer your capital gains taxes in a 1031 exchange, you need to reinvest your net proceeds from the sale into a new replacement property.

Diversify your Portfolio

A 1031 exchange also offers a great method for diversifying your real estate investment portfolio. With a 1031 exchange, you can diversify into different asset classes, alternative market segments, and geographical areas.

Sell Your Vacation Home

A vacation home can be exchanged in a 1031 transaction. However, there are additional restrictions on 1031 exchanges of vacation homes that you should be aware of before starting the process.

Contact a 1031 Exchange Professional

If you are interested in learning more about the tax-saving benefits of a 1031 exchange, contact a qualified intermediary today. At CPEC1031, LLC we make the 1031 exchange process as painless as possible. Our team of professionals can guide you through the process, prepare your necessary documents, and answer any questions you have along the way. Reach out to us today to learn more about our services and how we can help with your next like-kind 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

How Real Estate Closing Agents can Properly Handle 1031 Exchanges

Real estate closing agents need to be aware of a lot of different elements when facilitating the closing process. When an involved property is part of a 1031 exchange, things get even more complicated. In this article, we are going to discuss how real estate closing agents can properly handle 1031 exchanges of investment real estate.

Contact the Parties Involved

Despite our recommendations, taxpayers often want to jump on the 1031 exchange train very late in the process – perhaps right before they are set to close on a property. If nobody has made arrangements for a 1031 exchange and it’s time to close on the property, time is of the essence.

As a closing agent, the best course of action is to contact the party that intends to do the 1031 exchange and ask them the following questions:

  • Is the property you are selling your 1031 exchange relinquished property?

  • Have you started the 1031 exchange process with a qualified intermediary?

These two basic questions will give us the pertinent information needed to facilitate the closing of the 1031 exchange property.

Contact CPEC1031, LLC

Contact CPEC1031, LLC today to learn more about the 1031 exchange process and how you can defer capital gains taxes on the sale of real estate. We have been facilitating 1031 exchanges of real property for over two decades. Let us put our experience to work for you on your next 1031 exchange. We can answer all of your questions and prepare all of your documents to ensure your exchange is a success. Reach out to our team today to start your 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

Defer the tax. MAXIMIZE your gain.