1031 exchange

The True Power of the 1031 Exchange

1031 Exchange Power

The 1031 exchange is an incredibly powerful tool for deferring capital gains taxes on the sale of real estate. But many taxpayers are unaware of its true power. In this article, we are going to explain the true power of section 1031 of the Internal Revenue Code and how you can harness that power to save money on taxes when selling real estate.

How a 1031 Exchange Works

In a typical real estate sale, you sell a piece of property and then have to pay capital gains taxes on the sale. A 1031 exchange allows you to defer these capital gains taxes by reinvesting your net proceeds into a new replacement property.

How to Harness the Power of a 1031 Exchange

So how can you harness the tax-saving power of a 1031 exchange? Simple. Any United States taxpayer is eligible to sell property under section 1031. You just need to ensure that your property meets the required use guidelines (i.e. it’s held for investment use) and be sure to meet all the exchange deadlines. If you do everything correctly, you’ll save yourself a huge capital gains tax bill and keep your money working for you in a continued investment.

Feel the Power of the 1031 Exchange

If you’re ready to feel the true power of the 1031 exchange, contact Commercial Partners Exchange Company today. Our qualified intermediaries have over twenty years of experience facilitating exchanges of all shapes and sizes. We work with clients in the Twin Cities metro area, as well as the greater United States. Contact us today at our primary office located in downtown Minneapolis, or one of our satellite offices located around the country. Let us help you get your 1031 exchange up and running today!

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

 

Why It’s Important to Work with a Company that Specializes in 1031 Exchanges

1031 Exchange Specialist

At Commercial Partners Exchange Company, we help clients through their 1031 exchanges. And that’s all we do. Rather than dabbling in a lot of different real estate services, we focus all of our efforts on 1031 exchanges – which makes us uniquely qualified to facilitate exchanges of all shapes and sizes. In this article, we’re going to talk about the importance of working with a company that specializes in 1031 exchanges.

Expertise

With a company that focuses specifically on 1031 exchanges, you are getting an unparalleled level of expertise. A company that does a few exchanges per year is not going to have the depth or breadth of knowledge on 1031 exchanges as a company that focuses solely on 1031 exchanges.

Personalized Service

We provide personalized service to each of our clients and get to know the specific details of your unique exchange. This allows us to provide the best possible service to our clients – regardless of the details of your exchange.

Commercial Partners Exchange Company Specializes in 1031 Exchanges

At Commercial Partners Exchange Company, we specialize in facilitating 1031 exchanges of real estate for taxpayers throughout the state of Minnesota and across the United States. Our qualified intermediaries can help you through each and every stage of the 1031 exchange process – and make sure you are fully prepared when it comes time to close. Contact us today to learn more about our services and how we can help you set up your next 1031 exchange transaction. You can find us at our offices in downtown Minneapolis.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Piecing Together the Perfect 1031 Exchange

Perfect 1031 Exchange

Conducting a 1031 exchange is a lot like piecing together a jigsaw puzzle. There are a lot of different pieces that need to be put together in a specific way in order to get to the finished product. In this article, we are going to discuss how to piece together the perfect 1031 exchange for your property.

Make Sure You Have the Right Pieces

First and foremost, make sure you have the right pieces before you begin putting them together. Specifically, it’s important that your property qualifies for 1031 exchange treatment. In order to satisfy that requirement, your property must be real estate held for investment or business use. You can’t use personal property held primarily for personal use (such as your family home).

Work with Someone Who Sees the Big Picture

Putting together a puzzle is especially difficult if you can’t see what the finished product should look like. The same is true when it comes to 1031 exchanges. It’s important to work with a qualified intermediary who understands the process front to back and can help guide you to the finished product. Intermediaries have so much experience facilitating exchanges that they know all the ins and outs of the process.

Exchanges Under Section 1031

A lot of investors are nervous about 1031 exchanges because they don’t understand the process. We can make sure you completely understand the process and that you are fully prepared for every stage – all the way up to the closing table. Our intermediaries have twenty years of experience facilitating exchanges across Minnesota and the entire country. Contact our 1031 exchange specialists today to learn more about our capabilities and how we can work with you on your like-kind exchange transaction.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The Importance of Collaboration in 1031 Exchanges

Collaboration 1031 Exchange

Any real estate transaction will require at least a little collaboration between parties. The same is true for 1031 exchange transactions. In this article, we are going to discuss the importance of collaboration in a 1031 exchange and talk about the specific parties you need to collaborate with to have a successful exchange.

Collaborate with Your Intermediary

The person you’re going to need to collaborate with the most is your qualified intermediary. This is your go-to resource who facilitates the exchange on your behalf.

Collaborate with Your CPA & Accountant

You’ll also need to work closely with your CPA or accountant before, during, and after your 1031 exchange. Most importantly, you’ll need to properly report the exchange to the IRS after the exchange wraps up. Your CPA will be able to help you with that.

Collaborate with Your Attorney

It’s also a good idea to connect with your real estate attorney before embarking on a 1031 exchange. This is just to ensure that your exchange won’t cause any additional issues for you.

Collaborate with a 1031 Exchange Company

Start collaborating with a 1031 exchange company today by contacting our qualified intermediaries. Commercial Partners Exchange Company has over twenty years of experience facilitating exchanges of real estate in Minnesota and across the United States. We can work with you through every step of your exchange and make sure you understand what’s happening every step of the way. Contact us to learn more about our exchange services and how we can help you defer taxes on your next real estate sale.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

 

Why Can’t I Access My 1031 Exchange Funds?

1031 Exchange Funds

1031 exchanges are governed by a set of strict rules and regulations. Especially when it comes to the sales proceeds in a like-kind exchange, it’s important to understand what you can and can’t do. If you inadvertently break one of the rules, your exchange may fail. In this article, we are going to discuss why you can’t access your funds during a 1031 exchange.

Rules Governing 1031 Exchange Funds

There are very specific rules that govern what can and cannot be done with the sales proceeds in a 1031 exchange. To recap – in a 1031 exchange, a taxpayer sells their relinquished property, then identifies and purchases a new replacement property. The catch is that all of the sales proceeds from the relinquished property sale must be redeployed into the replacement property.

Many taxpayers don’t fully understand this and want to dip into the net proceeds from their sale. Doing so would trigger taxable boot and lead to a failed exchange or only partial tax deferral. So it’s important to leave your 1031 exchange funds alone during the process and reinvest them fully into your replacement property when the time comes to do so.

Minnesota 1031 Exchange Company

If you have additional questions about a specific 1031 exchange situation, don’t hesitate to reach out to Commercial Partners Exchange Company. Our qualified intermediaries have decades of experience facilitating 1031 transactions in Minnesota and throughout the country. We can explain the 1031 process to you and make sure you are fully prepared when it comes time to close on your property. You can contact us at our primary office in downtown Minneapolis, or at any of our satellite offices located across the United States.

  • 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved