Sometimes doing 1031 exchanges can be difficult because the rules can seem confusing. You have to hold your property for investment or business purposes, and there are related party rules when you’re selling to a related person.
This gets really interesting when doing a 1031 exchange involving farmland that you’ve inherited from a deceased relative, especially if you plan on selling your interest in that property to another relative. In this situation, you have holding period issues and potential related party issues.
If you want to discuss doing 1031 exchanges of farmland that you’ve inherited from a deceased relative, it’s essential to work with a qualified intermediary.
1031 Exchange – Your Ticket to Capital Gains Tax Deferral
A 1031 exchange might be your ticket to saving money in capital gains taxes when selling qualifying real estate. In order to defer all of your capital gains tax burden, you need to meet certain benchmarks and timing requirements. It’s important to talk with a qualified intermediary early in the process so that you can set yourself and your exchange up for success. CPEC1031, LLC has been working on exchanges under section 1031 of the Internal Revenue Code for more than two decades. Let us help you set your exchange up for maximum tax deferral.
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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