A 1031 Exchange is a Team Sport

It takes the right team working together to get your 1031 exchange right and defer 100% of your capital gains taxes. Why is a 1031 exchange like a team sport? Because it touches more than just real estate. A single 1031 exchange can impact:

  • Taxes

  • Legal structure

  • Financing

  • Timing

  • Long-term income

  • Estate planning

Let’s talk about some of the essential players that make up a 1031 exchange team.

Qualified Intermediary

  • Holds exchange funds to preserve tax deferral

  • Ensures IRS rules and timelines are followed

  • Facilitates the mechanics of the exchange

  • A qualified intermediary does not give tax or legal advice but without one there is no deferred exchange.

Legal Counsel

  • Reviews ownership structures and legal entities

  • Advises on trusts, estate considerations, and contracts

  • Flags legal risks that do not show up on a spreadsheet

  • Ensures that the exchange is structured correctly

Banker

  • Helps plan debt replacement and avoid mortgage boot

  • Structures financing aligned with exchange timing

  • Ensures capital does not become the bottleneck

  • Answers the question: “how do we finance this without breaking the exchange?”

Accountant / Tax Advisor

  • Calculates gain, depreciation recapture, and exposure

  • Models scenarios before the sale

  • Evaluates how a 1031 exchange fits with your broader tax picture

  • Answers the question: “what does this decision actually mean on my tax return?”

Title / Escrow Agent

  • Executes clean closings

  • Coordinates with the qualified intermediary on fund flow

  • Prevents technical errors that can derail an exchange

  • Answers the question: “did this close exactly the way the IRS requires?”

Find a Qualified Intermediary to Help with Your 1031 Exchange

At CPEC1031, LLC, our qualified intermediaries can help you through all the details of your next 1031 exchange of investment or business real estate. We have decades of experience facilitating 1031 transactions in Minnesota and across the United States. Let our team help guide you through the process of deferring your capital gains taxes under section 1031 of the Internal Revenue Code. Contact us today at our Twin Cities office to learn more about the process and get your like-kind 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Defer the tax. MAXIMIZE your gain.

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