Video – RSVP for a 1031 Exchange Workshop in Rochester, MN

Jeff Peterson here with an important update. We’re putting on a workshop on 1031 exchanges live and in person in Rochester, MN on April 24 at the Rochester Area Foundation. Space is limited and this course is approved for two hours of Continuing Education Credit for real estate agents. It’s going to be a really neat event and we hope to see you there!

• When: Thursday, April 24, 2025, 9:30AM - 11:30AM (9:00 AM - Check in & Networking)

• Where: 12 Elton Hills Dr NW, Rochester, MN 55901-3538

Secure your spot by RSVPing at the link below:

• 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

How a 1031 Exchange can Keep Your Money Working For You

A 1031 exchange can help keep your money working for you in a continuation of your investment, thus compounding and building your wealth over time. But how exactly does that work?

Keep Your Money Working For You

When you sell investment real estate in a typical, straightforward sale, you are responsible for paying capital gains taxes on the net proceeds you receive. Depending on the size and value of your property, this can add up to a sizeable tax bill which may even make you question whether or not you want to sell your property at all.

Thankfully, there is an alternative option – a 1031 exchange. In a 1031 exchange (aka like-kind exchange), you can defer your capital gains tax burden when selling real estate that qualifies. The catch is you have to reinvest your net proceeds into a replacement property, rather than pocketing the proceeds. The benefits of this are many. You get to defer a potentially huge tax bill when selling your property and you can keep your money working for you in a continued investment.

Get Help with Your Next Like-Kind Exchange

Get the help you need with your next like-kind exchange of investment real estate. CPEC1031, LLC is here to help you through all the aspects of your next 1031 exchange, from beginning to end. Our team of qualified intermediaries can guide you through the like-kind exchange process and ensure you are well prepared when it comes time to close on your property. Let us put our 20+ years of experience to work for you on your next 1031 exchange. Contact us today to learn more.

• 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

How Long After an Exchange can a Spouse Gift a Replacement Property to Their Spouse?

How long after an exchange can a spouse transfer a replacement property (acquired to complete a 1031 exchange) to their spouse? Ideally, you want to wait 24 months after completing the exchange. The title-holding spouse completing the 1031 exchange must “intend” to hold the replacement property for investment or business purposes rather than for a gratuitous (gifting) purposes.

26 USC 1041 - Transfers of Property Between Spouses – allows for tax-free transfers of property between married spouses, so it will not cause a gain.

The core issue is about “holding for investment and business purposes” after completing the exchange, and “continuity of investment.” Generally, a taxpayer's intent regarding the property acquired in an exchange has to be to keep the property acquired, and intend to do so with an investment purpose. Regals Realty Co. v. Commissioner, 127 F.2d 931, 933-34 (2d Cir. 1942).  The safe answer is the longer it is held for the qualified use…the better. In IRS Rev. Proc.  2008-16, The Service looks at two 12-month periods to determine if a property is held for a qualified purpose.

The IRS and federal courts may examine all of the facts and circumstances surrounding the transaction to determine the taxpayer's true intent at the time of the exchange. See Reesink v. Commissioner, No. 2475-10, 2012 Tax Ct. Memo, at 1 (T.C. Apr. 23, 2012). See also Goolsby v. Comm’r, T.C. Memo 2010-64 (T.C. 2010). See also Danielson v. Comm’r of Revenue, 2013 Minn. Tax, 2013. See also Johnson v. Comm’r of Revenue, 2014 Minn. Tax, 2014.

Reach out to CPEC1031, LLC Today

Reach out to the professionals at CPEC1031, LLC today to discuss the specific details of your next like-kind exchange of real estate. Our team of qualified intermediaries can guide you through the entire process of your 1031 exchange, from the sale of your relinquished property to the acquisition of your replacement property. We have over two decades of experience working with owners of investment real estate who want to defer their capital gains taxes and keep their money working for them. Contact us today to learn more!

• 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