4 Strategic Questions to Ask Yourself Before Starting a 1031 Exchange

When you’re considering a 1031 exchange of your investment or business property, the first thing you should do (prior to considering structures and timelines) is to ask yourself these strategic questions about your property:

1. What role does this property play in your income today?

2. What role do you want the property to play 10 years from now?

3. Who in the family needs flexibility and who needs certainty (when considering your estate planning)?

4. Is the goal to stay active in this property or to thoughtfully transition to a different type of property (perhaps one that is less management intensive)?

When those answers are clear, the right 1031 exchange strategy tends to reveal itself. Of course, these are just a few of many questions you need to ask yourself prior to beginning your 1031 exchange. If you need help answering these questions, a qualified intermediary can help.

1031 Exchanges Offer Many Benefits

A 1031 exchange is a powerful tool that allows for tax deferral on the sale of like-kind property that’s held for investment or business purposes. That being said, there are a litany of rules and regulations that you must abide by in order to successfully defer your capital gains tax burden. At CPEC1031, LLC, our team of like-kind exchange professionals are here to help you through the 1031 exchange process from start to finish. We can answer your questions, help put together documentation, and make sure you are fully prepared for the closing table. Contact us today to learn more about the process and get the ball rolling!

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Video – Rethinking 1031 Exchanges of Farmland

The problem with farmland is that the cash-on-cash returns are not that lucrative. Institutional grade investment commercial real estate can provide an alternative because it offers a higher rate of yield, and a more steady and reliable source of income. Furthermore, if you purchase it through a DST (Delaware Statutory Trust) it’s a divisible asset that can be divided up amongst your heirs upon your passing with a stepped up basis.

Exchange Your Property with Section 1031

Defer your capital gains taxes when you exchange like-kind property for like-kind property under section 1031 of the Internal Revenue Code. At CPEC1031, our qualified intermediaries are here to help you navigate the 1031 exchange process from beginning to end. We have more than twenty years of experience facilitating transactions under section 1031 and can help ensure that you are set up for success. Contact us today at our Twin Cities office in downtown Minneapolis to learn more about the process and get your 1031 exchange started!

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Video – What to Do When One Partner Doesn’t Want to Do a 1031 Exchange?

Sometimes real estate is owned by an LLC that’s taxed as a partnership and not all of the members want to do a 1031 exchange. They would rather get out of the entity before a sale takes place so that they can take their share of the net proceeds independent from the LLC and deal with the tax consequences. This is sometimes called a TIC (Tenancy in Common) out. The reason that you want to TIC them out is that they don’t want to go along with the rest of the entity and do a 1031 exchange. Rather, they simply want to take their cash and pay their taxes. If you’re going to TIC someone out you need to make sure that you actually transfer the benefits and burdens of ownership. You need to deed them their interest. You want to assign their share of the seller’s rights and obligations in the purchase agreement. You want to notify the insurance company to add an additional insured (the new tenant in common owner). You may also want to talk to your lender that holds the mortgage and get their consent to this transfer.

Find a 1031 Qualified Intermediary

Find a qualified intermediary to help with your next 1031 exchange by reaching out to the team at CPEC1031, LLC. We have been working in the 1031 exchange industry for more than two decades. Our team can help you through all the stages of your 1031 exchange – from document preparation, to property identification, all the way to the closing table. Set yourself up for success by working with a qualified intermediary. We can make sure that you have the best shot at deferring 100% of your capital gains taxes when selling 1031 property.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How to Integrate 1031 Exchanges Into Retirement Planning

Retirement doesn’t have to mean stepping away from real estate, but it might mean repositioning your real estate. As retirement approaches, many investors look to reduce management responsibilities, create predictable income, and preserve wealth. A 1031 exchange can help you accomplish all of these goals.

With the right 1031 exchange strategy, your properties can shift from hands-on management to passive, income-focused assets without triggering unnecessary taxes.

Reposition Your Real Estate with a 1031 Exchange

1031 exchanges can help reposition real estate into a variety of alternatives, such as:

• Passive DST (Delaware Statutory Trust) Investments

• Triple-Net (NNN) Leased Properties

• Real Estate Investment Trusts (REITs)

These types of investment properties can take the burden off of your shoulders as you entire into your retirement years, all while deferring your capital gains tax burden. That’s why so many real estate investors consider like-kind exchanges as they approach retirement. If you’re interested in setting yourself up for a management-free retirement, talk to a qualified intermediary today about the 1031 exchange process and see if it’s an option for you.

Defer Capital Gains Taxes on the Sale of Investment or Business Property

With a 1031 exchange, you can defer your capital gains taxes when you sell like-kind property that’s held for investment or business purposes. The catch is that you must reinvest your sales proceeds into a like-kind replacement property to continue your investment. A qualified intermediary from CPEC1031, LLC can help guide you through the 1031 exchange process, making sure you hit all the necessary benchmarks. Contact our qualified intermediaries today at our Twin Cities office, located in 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Considering a 1031 Exchange in 2026? Here are Some Essential Tips for Planning Ahead

Successful 1031 exchanges involved planning ahead to avoid the pressure of strict deadlines. In this article, we are going to run through some pro tips for planning ahead to set your 1031 exchange up for success.

Planning Early Keeps You in Control

The most successful 1031 exchanges are not figured out under deadline pressure. They are shaped months in advance, before the clock starts ticking. Once the 45-day identification window opens, strategy will give way to speed.

Assemble Your 1031 Exchange Team

To ensure the success of your 1031 exchange, you need to assemble a great 1031 exchange team. This team often includes:

• Qualified Intermediary

• Legal Counsel

• Banker

• Accountant / Tax Advisor

• Real Estate Agent

• Title / Escrow Agent

Bring Clarity to Your Deal

• Estimate your sale price and transaction costs.

• Determine outstanding loan balance and payoff terms.

• Figure out the net equity expected to reinvest.

• Estimate your capital gain and depreciation recapture.

• Plan ahead for debt replacement.

1031 Exchange Pro Tips

• Plan ahead and consult with your tax advisor, CPTA, and qualified intermediary.

• Confirm your written notice (Replacement Property Identification Form) is received on time to your qualified intermediary.

• Consider identifying “in the alternative” by listing Property A or B, not both.

• Lock up a replacement property early by getting it under contract for purchase, or purchasing the property in a reverse exchange.

Your 1031 exchange success depends on following the rules and working with a qualified intermediary who knows the rules inside and out.

Contact a Qualified Intermediary at CPEC1031, LLC

Get started with your 1031 exchange by contacting a qualified intermediary at CPEC1031, LLC. Our team has over two decades of experience working on forward exchanges, reverse exchanges, and build-to-suit exchanges under section 1031 of the Internal Revenue Code. We have all the skills and experience needed to facilitate your transaction and ensure that you can defer 100% of your capital gains tax burden when selling qualifying real estate. Contact us today to learn more about our array of services and see if you are a good candidate for 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved