How to Know When It’s The Right Time to Do a 1031 Exchange

When it comes time to sell a piece of investment or business real estate, you have a few options at your disposal. You could sell the property and pocket the proceeds, or do a 1031 exchange and defer your capital gains taxes in the process. Deciding between these options can be difficult. In this article, we are going to discuss how to determine when it’s the right time to do a 1031 exchange.

Do You Need Liquidity Fast?

If you need cash fast, then your best bet is to do a straight forward sale of the real estate. This allows you to pocket the net proceeds from the sale. However, you will need to pay capital gains taxes on these sales proceeds. Depending on the size of your property, this can be a substantial tax burden.

Do You Want to Defer Your Taxes & Compound Your Wealth Over Time?

If you are able to delay your gratification and not pocket the net proceeds, you can defer your capital gains taxes with a 1031 exchange. This allows you to reinvest your sales proceeds into a bigger replacement property and keep your hard-earned cash growing in a continuation of your investment.

Consider a 1031 Exchange

Get the most out of your investment property sale by considering a 1031 exchange. Under section 1031 of the Internal Revenue Code, you can defer your capital gains tax burden on the sale of real estate that’s held for investment or business purposes. If you have questions about the 1031 exchange process, contact the qualified intermediaries at CPEC1031, LLC. Our team has been facilitating like-kind exchanges for more than two decades. We can help you through the entire exchange process from top to bottom, making sure you understand what’s happening at every stage.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange Documents - Adobe Acrobat eSign Guide

An essential part of completing your 1031 exchange is ensuring that your documents are signed prior to your closing. In this guide, we will walk you through the eSign process.

To sign, you can expect two emails, one from the 1031 team with instructions and one from Adobe Acrobat Sign inviting you to review and sign. Once in the Adobe Acrobat Sign page, you will see text at the top of the page indicating how many fields are remaining, as well as a blue arrow that will navigate you towards the next field to complete. To sign your initials, you will need to draw in the pop-up box after clicking the yellow field on the page.

You are able to re-sign as many times as needed if you do not like how they appear. Once you have it signed as desired, click the Apply button. This will save your initials for any further fields requiring initialization. To advance to the next field, click the blue arrow to the side of the document.

To create your signature, you will follow the same steps as before when signing your initials. You may re-sign as many times as needed until you have it displayed as you prefer.

Once you are satisfied with your signature, click Apply to add to the document and save for future fields requiring your signature. Continue navigating the document by using the blue arrow to the side to direct you to the next required field and click the yellow field to auto-input your saved signature.

Once you have completed all required fields, the ribbon at the bottom of the document will change and display a red arrow pointing to a blue button that says Click to Sign. Additionally, the top ribbon on the right side will update to inform you that all required fields are now complete. Prior to submitting, you are able to review this document by scrolling through the pages here to look through your signed fields.

You will have the ability to download this signed document for your review and filing after clicking the Click to Sign button at the bottom once everything looks satisfactory.

After clicking the Click to Sign button at the bottom, the page will change to a white screen with a blue checkmark and text stating you're all set. This indicates that you have successfully signed these documents and you are able to download a copy here.

Additionally, you will receive a new email after completion from Adobe informing you that you're done signing with an option to open the agreement for your review and filing. Enter the password provided earlier in the e-signing instruction email to view your signed exchange documents. On the ribbon at the top of the screen, you may notice a download and print icon. Clicking either of these will prompt you to select where you would like to save this document.

Please reach out if you need further assistance with signing or if you have any other questions.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Can a Trust Hold 1031 Replacement Property?

What if a taxpayer sells investment property individually but wants the 1031 replacement property titled in a trust? Will they still be able to qualify for 1031 exchange treatment?

The Same Taxpayer Question

The key question we need to answer here is whether the person conducting the 1031 exchange and the trust are treated as the same taxpayer for federal income-tax purposes.

A grantor trust may be treated as the individual owner for tax purposes. A non-grantor trust may be a separate taxpayer. That essential difference can determine whether the proposed title creates a same-taxpayer issue.

Before the replacement property closes, it’s important to confirm the trust’s tax treatment with your tax and estate-planning advisors. As we often discuss, a successful 1031 exchange requires a strong team of advisors that consists of a qualified intermediary, CPA/accountant, lawyer, financial planner, and more. Be sure to loop all of these advisors into the process so that you are set up for success.

Section 1031 of the IRC

When you do a 1031 exchange of your investment real estate, you can defer capital gains taxes and compound your hard-earned wealth over time. Savvy investors utilize section 1031 of the Internal Revenue Code to complement their long-term wealth-building strategy. Any investor can conduct a 1031 exchange as long as their property qualifies. At CPEC1031, LLC we help investors large and small facilitate exchanges of all types. Reach out to our team today to set up a time to speak with a qualified intermediary about your next like-kind exchange under section 1031 of the IRC.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Will 1031 Exchanges Change in the Future?

1031 exchanges are a wonderful tax-saving strategy and many investors want to know what the future holds for section 1031. In this article, we are going to talk about the history of 1031 exchanges and how they might change in the future.

A Brief History of 1031 Exchanges

Many people don’t realize that 1031 exchanges have been around for a long time. In some form or another, 1031 exchanges have existed as a part of the United States tax code for more that a century. Section 1031 has also gone through many changes over its lifetime. The most recent major change came with the 2018 Tax Cuts and Jobs Act, which restricted 1031 exchanges to real estate and excluded personal property exchanges. Section 1031 is an ever evolving provision.

The Future is Uncertain

The truth is that nobody has a crystal ball – the future of the 1031 exchange is uncertain. 1031 exchanges are often under attack by both political parties for various reasons. That being said, section 1031 has been a part of the US tax code in one form or another for over 100 years. While 1031 exchanges may not look identical in the years and decades to come, their many benefits for investors and the economy at large make for great reasons to keep them around.

Defer Your Capital Gains Taxes with a 1031 Exchange

Defer your capital gains taxes with a 1031 exchange of real estate held for investment or business use. Section 1031 of the Internal Revenue Code is available for any US taxpayer to utilize as a tool for tax deferral. Tax-savvy investors have been 1031 exchanging property in one form or another for over 100 years. Contact the qualified intermediaries at CPEC1031, LLC to learn about the like-kind exchange process and see if your property is a good candidate for 1031 tax deferral. You can find us at our main office 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

The Tax Consequences of Not Doing a 1031 Exchange

A 1031 exchange of investment or business real property provides significant tax benefits that many savvy investors use as part of a long-term wealth building strategy. But many people do not conduct 1031 exchanges, electing instead to sell their property in a straight-forward sale. In this article, we are going to talk about the tax consequences of electing not to do a 1031 exchange of your investment real estate.

Capital Gains Taxes

When you sell a piece of investment real estate in a straight-forward sale and pocket the cash proceeds, you will need to pay capital gains taxes on those net proceeds. Depending on the size and value of your property, this can result in a significant tax bill. A 1031 exchange allows you to defer this capital gains tax burden as long as you reinvest your net proceeds into a like-kind replacement property of equal or greater value, equity, and debt. The biggest consequence of not doing a 1031 exchange is that you need to pay hard-earned money to the government in the form of capital gains taxes. By doing a 1031 exchange, you get to keep your hard-earned money working for you in a continuation of your investment that compounds and builds wealth into the future.

Find the Right Qualified Intermediary for Your 1031 Exchange

Finding the right qualified intermediary for your 1031 exchange of real estate is essential to ensuring the success of your exchange. At CPEC1031, LLC our qualified intermediaries have decades of experience facilitating 1031 exchange transactions in Minnesota and across the United States. We can help you with the details of your 1031 exchange no matter where your property is located. Contact us today to learn more about the 1031 exchange process and see how we can help you save money in capital gains taxes when selling qualified real estate under section 1031 of the IRC.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved