A major benefit of a 1031 exchange is the potential to defer capital gains taxes when proceeds from the sale of qualifying investment real estate are reinvested into a replacement property according to IRS requirements.
A 1031 exchange can also be used as part of a larger investment strategy. For example, an investor could sell an existing commercial property and exchange into multifamily, industrial, office, or other qualifying investment (or business) real estate. The goal may be to reposition assets, diversify holdings, pursue different income opportunities, or acquire property that better aligns with changing investment objectives.
Because every transaction is different, it's important to evaluate the exchange structure, property qualifications, deadlines, and tax implications before proceeding. A qualified intermediary can help you set up your 1031 exchange strategy and work in tandem with your other advisors (your lawyer, CPA, real estate agent, etc.) to ensure the exchange is set up for success.
Take the Plunge with Section 1031
Take the plunge with section 1031 and start deferring your capital gains taxes on the sale of investment or business real estate. A 1031 exchange allows you to defer up to 100% of your capital gains tax burden so long as you reinvest your sales proceeds into a bigger replacement property. There are many rules and requirements when it comes to 1031 exchanges and it’s important to stay on top of things in order to ensure a successful exchange. The best way to do that is to work with a qualified intermediary throughout the process. Contact CPEC1031, LLC today to speak with our intermediaries and get started.
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.
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