Why It’s Important to Find the Best Qualified Intermediary for Your 1031 Exchange

Finding the right qualified intermediary is essential in a 1031 exchange. It’s important to work with a qualified intermediary who has the skills needed to facilitate your particular transaction. However, many people don’t know why it’s important to work with the perfect intermediary. In this article, we are going to explain why it’s essential to work with a skilled intermediary on your next 1031 exchange of real estate.

The Importance of Working with a Skilled Intermediary

The first question many taxpayers ask is: “why is it important to work with a skilled intermediary on my 1031 exchange?” A qualified intermediary performs many important tasks throughout the course of a 1031 exchange. They can prepare all of your 1031-related documentation (and provide it to the relevant parties). They can answer your questions about the process and make sure you are never in the dark. They can insulate you from receiving any taxable proceeds when selling your relinquished property. These are just a few of the numerous reasons why it’s important to work with a skilled intermediary.

Qualified Intermediary Services

A 1031 exchange intermediary can help you through the process of deferring your capital gains taxes with a like-kind exchange. At CPEC1031, LLC we have been providing qualified intermediary services for more than two decades. Let us help you through the like-kind exchange process and ensure that you are able to defer 100% of your capital gains tax burden. Contact our team of 1031 exchange professionals today to learn more about the various benefits of conducting a 1031 exchange and see how we can help you through the process.

• 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

Can You Pocket Cash at Any Point During a 1031 Exchange?

Many taxpayers ask if they can take out any cash during the 1031 exchange process. In this article, we are going to talk about whether or not you can pocket cash at any point during a 1031 exchange.

Taxable Boot

If you pocket any cash at closing or during any point during your 1031 exchange, that would be considered taxable “boot.” You can do it if you wish, but you would have to pay capital gains taxes on that cash boot. Keep your hands off the net proceeds throughout the process to defer 100% of your gains.

Partial Exchange

In most situations, the goal of a 1031 exchange is 100% tax deferral. However, there are some instances in which a partial exchange might be acceptable or even preferable. For example, if you have prior loss carryovers, you may be able to offset a partial recognition of gains from taking some cash as taxable boot or from buying down in value on the replacement property purchase.

Find a 1031 Exchange Professional

Find a 1031 exchange professional near you and get your like-kind exchange off the ground today. At CPEC1031, LLC we have over two decades of experience facilitating 1031 exchanges of all shapes and sizes for clients in Minnesota and across the country. Our qualified intermediaries are here to help you through the entire exchange process, from start to finish. We can answer all your questions, help you find suitable replacement property, and make sure you are meeting all the requirements set out by section 1031 of the IRC. 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

3 Key Benefits of a 1031 Exchange

Taxpayers conduct like-kind exchanges for various reasons, depending on their specific situations. Indeed, there are many benefits provided by section 1031 of the Internal Revenue Code, but many people are unaware of these benefits. In this article, we discuss three key benefits of doing a 1031 exchange of real estate.

Tax Deferral

A 1031 exchange allows you to keep your money working for you in a continuation of your investment. If you dispose of a property in a traditional, straight-forward sale, you will need to recognize and pay capital gains taxes on the net proceeds from that sale. A 1031 exchange offers you a tax-advantageous alternative in which you can defer those gains by reinvesting your proceeds into a replacement property of equal or greater value.

Growth

By leveraging the proceeds from your relinquished property sale, you can accelerate the growth of your wealth. By doing so, a 1031 exchange can help compound your wealth over time as you (potentially) continue to exchange into bigger and better properties.

Flexibility

1031 exchanges give you the flexibility to upgrade, diversify, or reposition your assets. You can exchange into and out of different geographic regions and industries. For example, you can sell a retail space in Edina, Minnesota and exchange into an apartment complex in Houston, Texas.

Tax-Deferred Exchange Company

CPEC1031, LLC helps taxpayers with tax-deferred exchanges under section 1031 of the Internal Revenue Code. We have been helping people with their 1031 exchanges for over twenty years and we can help you too! Contact us today to learn more about the like-kind exchange process and see if your property qualifies for 1031 exchange treatment.

• 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 to Find a Qualified Intermediary for Your 1031 Exchange

Many taxpayers want to get into the 1031 exchange game, but don’t know where to find a qualified intermediary to facilitate their transaction. In this article, we are going to offer up a few tips for finding a qualified intermediary for your 1031 exchange.

Ask Your Network

When you’re looking for a referral for anything, one of the best places to start is your existing network. Reach out to your real estate broker, your financial planner, your accountant, or your attorney and see if they can recommend an intermediary for your exchange. These professionals likely interface with qualified intermediaries during the course of their business and they can likely connect you with a trusted intermediary.

Do Some Research

You should also do your own research, even if you’ve been given a referral. Start with a Google search and find an intermediary with great reviews. Check out their web presence and see if they are a well regarded in the industry.

1031 Exchange Company – CPEC1031, LLC

CPEC1031, LLC is your go-to 1031 exchange company, ready to help answer all of your 1031 exchange related questions. We have more than two decades of experience in the like-kind exchange industry and are well-suited to guide you through the 1031 exchange process and help you avoid any potential pitfalls. We are here to help you defer capital gains taxes when you sell qualifying real estate. Contact us today at our downtown Minneapolis office to learn more about our 1031 exchange services and see how we can help you through the specifics of your next real estate 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

2 Tips to Set Your 1031 Exchange Up For Success

In a 1031 exchange, there are many potential traps that can lead to failure. In this article, we are going to lay out a couple tips to set your 1031 exchange up for success.

Give Yourself Plenty of Runway

One of the biggest potential traps in a 1031 exchange is time. Like-kind exchanges have strict time tables that you have to follow if you want your exchange to succeed. You have only 180 days total from the start of your exchange to the finish. On top of that, you only have the first 45 of those days to identify your replacement property. If you go over on either of those deadlines, you put your exchange in jeopardy. It’s important to give yourself plenty of prep time before starting your exchange to make sure you have all your ducks in a row.

Work with a Skilled Intermediary

It’s also important to work with a qualified intermediary that has experience facilitating 1031 exchanges like yours. There are many intricacies in the 1031 exchange process so it’s important to partner with an intermediary who understands the process inside and out.

Find a Qualified Intermediary Near You

Find a qualified intermediary near you by contacting CPEC1031, LLC today. We have over twenty years of experience facilitating exchanges under section 1031 of the Internal Revenue Code for taxpayers across the United States. If you are looking for help deferring capital gains taxes when selling investment real estate, we can help. Contact us today to learn a bit more about the full extent of services we provide and see how we can assist you through the many details of your next 1031 exchange of 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