Video – Can You Buy a Business with Your 1031 Exchange Funds?

It’s important to remember that 1031 exchanges are limited to solely real estate. It’s also important to remember that partnership interests are excluded from 1031 treatment as is the good will or going concern of a business.

However, there is a situation in which you can buy an interest in a business and have it qualify for 1031 exchange treatment. That’s when you buy out and consolidate to receive 100% of an entity. Let’s say you’re in a partnership with another individual and you buy out all of that individual’s interest in the partnership, consolidating 100% of the entity in your own capacity – making it a sole-proprietorship. In doing so, you’re deemed to have purchased out the underlying real estate that’s allocable to that other person’s interest in the entity. This comes from revenue rule 99-6. It’s a great way to buy out and consolidate and LLC in one person’s name. It’s also a great way to use up your 1031 exchange funds to buy up a property that you’re already familiar with.

Get Started with the 1031 Exchange Process

Begin your 1031 exchange today by contacting a qualified intermediary at CPEC1031, LLC. With over twenty years of experience, we are well-suited to handle all of the details surrounding your 1031 exchange of investment real estate. We’ve helped many taxpayers throughout the United States with their like-kind exchanges and we can help you with yours. Contact us today to learn more about our numerous service offerings and see how we can help you with your next 1031 exchange. Our team can help you with any type of exchange in any locale throughout 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – How Your Tax Filing Deadline Can Shorten Your 1031 Exchange Period

Many people identify multiple replacement properties, but when it all shakes out they really only end up purchasing one property. What if you purchased that one property and you still have an excess of unused exchange funds remaining in your account?

If you have identified properties still on the chopping block that you could potentially acquire, your exchange period doesn’t end until you either acquire those properties or the exchange period times out.

When does the exchange period time out?

The 1031 exchange period is generally 180 days. However, it’s also shortened to the due date for the filing of your federal income tax return. So if you want your exchange to end, timely file your tax return on April 15 and notify your intermediary that your exchange will be ending on April 15 (the due date for your federal tax filing). That works great if you sold your relinquished property late in the preceding year. This strategy does not work as well if you sell your property later in the year and you’re not able to use the April 15th shortened timeframe.

Your 1031 Exchange Questions, Answered

At CPEC1031, LLC we have been facilitating 1031 exchanges of investment real estate for more than two decades. Our qualified intermediaries have all the answers to your questions about 1031 exchanges. Contact us today to learn more about the 1031 exchange process and see how we can help you through the ins and outs of your next like-kind exchange of real estate under section 1031 of the Internal Revenue Code. You can find us at our downtown Minneapolis offices and set up a time to chat with one of our team members.

• 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 - Potential Issues When Selling Multiple Relinquished Properties in a 1031 Exchange

Can you combine the proceeds from multiple relinquished properties and purchase one bigger, better property in a 1031 exchange?

The answer, of course, is yes – you can sell multiple relinquished properties. However, this opens up a can of worms of potential issues:

• Logistical issues. You need to be able to sell two properties and dispose of them within the 180 day exchange period that commences from the date of the first sale. Further, you must properly identify a big enough replacement property within the 45 day period that commences upon the sale of the first relinquished property.

• Same taxpayer requirement issues. What if the two relinquished properties are not identically owned? If there’s a discrepancy you may be able to purchase the replacement property as tenants in common to avoid potential issues.

• Accounting issues. You need to make sure that your new replacement property is big enough and that the proportionate interests are allotted enough ownership so that there’s a continuation into property of equivalent or greater value and equity. Any debts that are disposed of on the old properties also need to be adequately offset. Think about it this way: both sales have separate accounting 1031 requirements. You need to test each of those sales to make sure that you’re covering the value, equity, and debt components.

Like-Kind Exchange Company

If you’re searching for a like-kind exchange company to help with your next 1031 exchange – you’ve come to the right place. CPEC1031, LLC is a like-kind exchange company focused solely on facilitating exchanges under section 1031 of the Internal Revenue Code. We have more than two decades of experience working through exchanges of all types (forward, reverse, build-to-suit, etc.) Reach out to our 1031 exchange intermediaries today to learn more about the like-kind exchange process and see how we can help you defer your capital gains tax burden when selling 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