Video – Consolidating LLCs or Partnerships Prior to a 1031 Exchange

In a 1031 exchange, the general rule is you can’t exchange into that which you already own because that wouldn’t be an “exchange.” But what if you’re in a partnership or LLC and you want to buy out all of the other partners, and you want to use your 1031 exchange funds for that purchase and consolidate 100% of the ownership in your sole name?

Revenue Rule 96-6 is your friend in this scenario. It tells us that when you consolidate 100% of a partnership and make it into a disregarded entity that you’re basically deemed to have acquired the real estate of the exiting partners. This is a great planning tool to consolidate partnerships and take control of the project for yourself.

Defer Capital Gains Taxes with a 1031 Exchange

Defer your capital gains tax bill when selling investment real estate by conducting a 1031 exchange rather than a straightforward sale. CPEC1031, LLC has been working on 1031 exchanges for decades. We can help you through the entire 1031 exchange process – from the sale of your relinquished property to the identification and acquisition of your replacement property. Contact us today to learn more about the many benefits of section 1031 and see how you can save money on capital gains taxes when you sell qualifying 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

Video – DSTs and 1031 Exchange Property Identification Rules

When you’re doing a 1031 exchange, you need to identify your replacement property within the first 45 days after the date of the relinquished property closing. Most people use the simplest rule (the 3 property rule). However, if you’re going to be identifying a DST (Delaware Statutory Trust), you should be mindful that the trust may be a portfolio of multiple properties. By identifying it you may reach the 3 property rule because its components exceed 3 properties.

Some people use the open third slot on their identification form as an insurance policy – trying to identify property as a fallback just in case the first two options don’t work out. By sliding a DST into that slot, you could blow the 3 property rule if that newly added DST is comprised of multiple assets.

There’s an easy workaround for this. Instead of using the 3 property rule you could use the 200% rule. However, in that case, you need to make sure that the value of all your identified properties doesn’t exceed twice the value of what you sold.

Work with a 1031 Exchange Professional

You can avoid any potential pitfalls like the one described above by working with a 1031 exchange professional at CPEC1031, LLC. Our qualified intermediaries are here to help you with all your like-kind exchange issues. Let us help set your exchange up for success. Contact us today at our Minneapolis office to learn more about our services and get started with your next like-kind 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

Video – How Financial Planners can Talk to Their Clients About the Benefits of 1031 Exchanges

Many clients own physical investment real estate and they no longer want to deal with the troubles associated with that real estate (tenants, toilets, etc.) Financial planners that have Delaware Statutory Trusts (DSTs) that morph into an UPREIT are able to help their clients transition from management-intensive physical real estate into passive, management-free real estate that provides a tax-efficient but still institutional grade quality investment.

If you want help highlighting the benefits of 1031 exchanges to your clients, feel free to reach out to CPEC1031, LLC.

1031 Exchanges in Minneapolis, MN

CPEC1031, LLC is located in Minneapolis, but we work with clients on 1031 exchanges of real estate all across the United States. If you are thinking about starting a like-kind exchange with your property, the qualified intermediaries at CPEC1031 are your go-to resource. We can help you identify your replacement property, prepare all of your documentation for closing, and ultimately defer your capital gains taxes on the sale of your investment real estate. Reach out today to learn more about the exchange process and see how our team can help.

• 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 – Can You Buy a Business with Your 1031 Exchange Funds?

It’s important to remember that 1031 exchanges are limited to solely real estate. It’s also important to remember that partnership interests are excluded from 1031 treatment as is the good will or going concern of a business.

However, there is a situation in which you can buy an interest in a business and have it qualify for 1031 exchange treatment. That’s when you buy out and consolidate to receive 100% of an entity. Let’s say you’re in a partnership with another individual and you buy out all of that individual’s interest in the partnership, consolidating 100% of the entity in your own capacity – making it a sole-proprietorship. In doing so, you’re deemed to have purchased out the underlying real estate that’s allocable to that other person’s interest in the entity. This comes from revenue rule 99-6. It’s a great way to buy out and consolidate and LLC in one person’s name. It’s also a great way to use up your 1031 exchange funds to buy up a property that you’re already familiar with.

Get Started with the 1031 Exchange Process

Begin your 1031 exchange today by contacting a qualified intermediary at CPEC1031, LLC. With over twenty years of experience, we are well-suited to handle all of the details surrounding your 1031 exchange of investment real estate. We’ve helped many taxpayers throughout the United States with their like-kind exchanges and we can help you with yours. Contact us today to learn more about our numerous service offerings and see how we can help you with your next 1031 exchange. Our team can help you with any type of exchange in any locale throughout the country.

• 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