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

Video – The 1031 Exchange 45-Day Identification Period Rules and Exceptions

In a 1031 exchange, can you change your identification of replacement property after the passing of the 45th day of the identification period? The general answer is no. You compute the day of closing on your relinquished property as day zero and count 45 days thereafter – that’s your identification period. By midnight of the 45th day you need to have made your identification of replacement property.

The only exception to that general rule is if you’re impacted by a federally declared disaster, in which case you may be eligible for an extension under Rev. Proc. 2018-58. You need to work with your tax advisor to determine if you are actually eligible for this special exemption because generally the IRS has created these guidelines to limit the number of people completing 1031 exchanges.

Find A Qualified Intermediary For Your Next Like-Kind Exchange

If you are searching for a qualified intermediary to help with your next like-mind exchange, look no further! The intermediaries at CPEC1031, LLC have more than twenty years of experience in the 1031 exchange industry. We can help you through every aspect of the 1031 exchange process, from document preparation, to replacement property selection, to closing and reporting. Reach out to us today to learn more about the 1031 exchange services we provide and see how we can help you through the ins and outs of your next 1031 exchange of investment 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 – The 1031 Exchange Timeline, Explained

The date of the closing of your relinquished property is day zero for computing both the 45 day identification period deadline and the 180 day exchange period deadline. You have to submit your property identification by midnight of the 45th day, and you must complete the purchase of your replacement properties by the 180th day.

1031 Exchange Tips and Resources

If you’re looking for 1031 exchange tips and resources, you’ve come to the right place! CPEC1031, LLC is your one-stop-shop for all things 1031 exchange. For more than two decades, we have been providing qualified intermediary services to clients throughout the state of Minnesota and across the country. We have extensive experience facilitating forward exchanges, reverse exchanges, and built-to-suit exchanges. Let us put our experience to work on your next like-kind exchange of real estate. With our help, you can defer 100% of your capital gains taxes when selling qualifying real estate under section 1031 of the Internal Revenue Code.

• 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