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 – How Does the Section 121 Exclusion Work?

Under section 121, there is an ownership test and a use test, and they don’t have to happen concurrently. For example, you may have rented and lived in a property for 24 months and then bought the property but moved out of and owned it for another 24 months. Your use and your ownership don’t have to be concurrent.

Section 121 applies to your primary residence. Your exclusion amount is $500,000 for married couples filing jointly ($250,000 for individuals) of profit under this provision.

Consider this scenario: you buy a property, live in it for a year, then rent it for three years, and subsequently return and live there for a year. As long as you make less than your exclusion amounts listed above, you won’t have any tax because you lived in the property as your primary residence for 24 months out of the previous five years.

Find the Right Qualified Intermediary for Your Next Like-Kind Exchange

A qualified intermediary can help you defer capital gains taxes with a like-kind exchange. However, it’s important to find the right intermediary for your particular exchange. Not all qualified intermediaries provide the same services or the same quality of services. At CPEC1031, LLC we are well-verse in all types of 1031 exchanges – from forward exchanges to reverse exchanges and everything in between. We have been working with clients on their 1031 exchanges for more than two decades. Give us a call today to discuss the intricate details of your unique 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – 1031 Exchanges of Vacant Land

Many taxpayers own raw or vacant land that they are holding for appreciation. Perhaps they think that land is in the pathway for development 5-10 years out and that it will be worth a lot of money some day.

You can do a 1031 exchange on property that is costing you money to own (due to the property taxes and insurance costs), but it’s important to ask yourself how you own the property. Did you inherit it in a trust? Did you acquire it as a part of an entity or individually?

There are a lot of questions to answer before you get started. Generally speaking, individual owners who are tenants-in-common and have owned the property for investment or business purposes can each do 1031 exchanges on their separate sales of their fractional interest in the real estate.

A Qualified Intermediary Can Help You with Your 1031 Exchange

If you’re interested in learning more about the tax deferral benefits of a 1031 exchange of your investment real estate, a qualified intermediary can help. A qualified intermediary is a neutral third party that can insulate you from receiving any taxable “boot” during the exchange process. They can also help prepare documentation, coordinate with your tax advisor, and answer any questions you might have throughout the 1031 exchange process. Contact the intermediaries at CPEC1031, LLC today to learn more about the exchange process and get the ball rolling with your next 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

Video – Do I Need a Qualified Intermediary for a Simultaneous Exchange?

If two parties are doing a simultaneous 1031 exchange, you don’t technically need to use a qualified intermediary. However, it’s often still a prudent practice to use a qualified intermediary in a simultaneous exchange because that’s how the IRS has become accustomed to seeing these exchanges reported. Additionally, the qualified intermediary structure provides a certain formality and uniformity to the process.

This is perhaps even more important when there are differences between the two parcels being sold. If the values being swapped are not identical, that means one party is going to need to be made whole by adding cash to the transfer. Another factor is that if one property has debt on it and the other doesn’t, that debt has to be extinguished in order to convey marketable title. Using a qualified intermediary helps soften the rough edges of the transaction and provides a uniform way of dealing with any discrepancies in value, equity, and debt.

Defer the Tax and Maximize Your Gain with a 1031 Exchange

A like-kind exchange under section 1031 of the Internal Revenue Code allows you to defer your capital gains taxes and maximize your gain when selling qualifying real property. At CPEC1031, LLC we have decades of experience in the 1031 exchange industry and have performed countless exchanges of all shapes and sizes, from forward exchanges, to reverse exchanges, to build-to-suit construction exchanges. Reach out to our team of 1031 exchange professionals today at our Twin Cities office to get started with your next 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved