Video – The Benefits of a 1031 Exchange Cooperation Clause

When you’re doing a 1031 exchange, a very prudent practice is to put a cooperation clause in the contract for the sale of your relinquished property. This alerts everybody involved in the transaction (including the closing agent) that they need to be careful how they disburse the money because your funds need to go to your qualified intermediary. It also sets a record of your intent that you want to do a 1031 exchange so there is no question about your mindset as you begin the process. Finally, a cooperation clause can act to elicit the cooperation of the other parties to the purchase agreement to whom written notice must be given that you’re assigning your rights in the contract to your qualified intermediary. That way there isn’t any drama at the time of closing because expectations have been set.

Work With a Qualified Intermediary on Your 1031 Exchange

Work with a skilled qualified intermediary on your next 1031 exchange of real estate and start saving money by deferring your capital gains taxes. At CPEC1031, LLC our intermediaries have more than twenty years of experience at our backs. We have facilitated like-kind exchanges of all shapes and sizes and we can help you through the details of your next exchange. Contact us today at our Twin Cities 1031 exchange office to learn more about the process, our intermediaries, and whether your property qualifies for 1031 tax deferral.

• 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 – Reporting a 1031 Exchange to the IRS

When you complete a 1031 exchange, you need to report it to the IRS on a form 8824. This is essentially a worksheet that’s attached to your tax return for the year in which the relinquished property is disposed of. It’s important to do this because that’s how you become eligible for reporting the tax deferral. Further, it helps the IRS connect the dots between the informational return that they receive from the closing agent responsible for reporting the sale of your property (form 1099-S) and the replacement property you acquired to satisfy the requirements of your 1031 exchange. This completes the story for the IRS.

Twin Cities Qualified Intermediaries

The Twin Cities qualified intermediaries at CPEC1031, LLC are here to help you through all the aspects of your next like-kind exchange of investment real estate. For over two decades, we have been assisting taxpayers across the United States with their 1031 exchanges. We have the skills and the knowledge to ensure your exchange is a success from start to finish. Contact us today at our primary office location in downtown Minneapolis to learn more about our full range of 1031 exchange services and get your exchange up and running.

• 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 – Total vs. Partial 1031 Exchange Options

If you want to defer every penny of your taxes in a 1031 exchange you can do so. But not everyone wants a 100% tax deferred exchange. Some people are happy to take some taxable boot because they want to pay off debt, or they simply need the resources. When you take that cash you have to be willing to take your lumps in the form of taxation on that money.

Another technique that you may want to consider is instead of taking cash at the sale of the relinquished property, you could complete the exchange by reinvesting 100% of your cash proceeds into a replacement property of sufficient value. Later, in a subsequent transaction you could put debt on the replacement property. When you borrow money outside of the confines of a 1031 exchange you don’t pay taxes on that money because you have an obligation to repay that loan, so it’s not gross income. This two step process could save you a lot of money in taxes.

Get Your Like-Kind Exchange Off the Ground

Get your like-kind exchange of real property off the ground today by engaging a qualified intermediary at CPEC1031, LLC. With more than twenty years of experience at our backs, we have the skills and expertise needed to make sure your 1031 exchange is successful. Let us handle all the unique details of your 1031 exchange so you can focus on other things. Set up a time to discuss your next like-kind exchange with our team of qualified intermediaries. You can reach us at our Twin Cities office, located in the heart of 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 – A Reverse 1031 Exchange is NOT a Retroactive Exchange

Sometimes people contact a qualified intermediary after they’ve already purchased a replacement property and they want to sell a relinquished property and do what they think is a reverse exchange. However, a reverse 1031 exchange is not a retroactive 1031 exchange. A reverse exchange under Rev. Proc. 237 is really a parking arrangement where you have the qualified intermediary form an LLC to become your surrogate purchaser of that replacement property and hold it for up to 180 days. During that holding period you sell your relinquished property. A reverse exchange is not a retroactive exchange in which you are allowed to acquire the replacement property on your own and then sell your relinquished property later.

Defer Capital Gains Taxes and Continue Your Investment with a 1031 Exchange

A 1031 exchange allows you to defer capital gains taxes while continuing your investment when selling qualifying property that’s held for investment or business use. CPEC1031, LLC can help facilitate your 1031 exchange transaction and make sure you meet all the necessary benchmarks during the process. Our qualified intermediaries understand the ins and outs of section 1031 of the Internal Revenue Code. We’ve been working in the like-kind exchange industry for over twenty years and can help you through the details of 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Want to Close More Real Estate Deals? Educate Your Clients on 1031 Exchanges

If you're a real estate agent, broker, or investor looking to increase transactions and unlock hidden inventory, it’s time to leverage the power of the 1031 exchange. Many property owners hold off on selling simply because they’re worried about paying capital gains taxes. That hesitation results in fewer listings (and fewer opportunities) for you.

Introduce Your Clients to the Power of the 1031 Exchange

Here’s the solution: Introduce your clients to the benefits of a 1031 tax-deferred exchange, a legal strategy that allows them to:

• Defer capital gains taxes when selling qualifying property

• Reinvest in higher-performing or more strategic real estate assets

• Scale their real estate portfolio without taking a tax hit

By educating your clients on how to use a 1031 exchange to sell and reinvest smarter, you're not just helping them, you’re creating more opportunities for yourself.

More Listings. More Buyers. More Closed Deals.

Whether you're working with seasoned investors or first-time sellers, understanding and promoting 1031 exchange strategies can dramatically increase your deal flow. Don’t leave money on the table. Use this powerful tool to unlock off-market opportunities and drive real estate growth.

Minnesota 1031 Exchange Services

Looking for 1031 exchange services for your next like-kind exchange of real estate? You’ve come to the right place. At CPEC1031, LLC our qualified intermediaries are well equipped to work through every step of the 1031 exchange process. For more than twenty years we have been facilitating forward exchanges, reverse exchanges, build-to-suit exchanges, and more. Let us help you through the ins and outs of the 1031 exchange process and make sure you don’t miss a beat. You can set up a time to chat with one of our qualified intermediaries by contacting us at our Twin Cities office today.

• 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