A 1031 exchange can be used by any United States taxpayer who wants to defer capital gains taxes while selling and purchasing qualifying real property. In this article, we are going to talk about how you can use a 1031 exchange to exit an active management investment and enter a passive investment.
The Versatility of a 1031 Exchange
One of the greatest benefits of a 1031 exchange is the versatility it offers. A 1031 exchange allows you to move between different geographic areas, as well as different real estate sectors. This presents a fantastic opportunity for people who want to sell their active management properties and enter a more passive real estate investment (while deferring capital gains taxes).
For example, you could sell a rental property (an apartment building, fourplex, etc.) and 1031 exchange into a less management intensive property like a REIT (Real Estate Investment Trust).
This is an especially popular strategy for taxpayers who want to retire and no longer want to deal with the headaches that come with owning active management property.
Take the First Step with Your 1031 Exchange
Take the first step with your 1031 exchange by calling a qualified intermediary at CPEC1031, LLC. We have been helping taxpayers for over twenty years with their 1031 exchanges of real property and we can help you too! Reach out to us at our Twin Cities office to get to know more about the benefits of 1031 exchanges and see how we can help you defer capital gains taxes when selling qualifying real estate. We facilitate exchanges under section 1031 of the Internal Revenue Code throughout the state of Minnesota and the entire 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.
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