1031 exchanges date all the way back to 1921. For over 100 years, 1031 exchanges have existed in the tax code in some iteration. The big breakthrough that opened the floodgates was when T.J. Starker (a lumber baron from Oregon) decided to challenge the existing paradigm of the time. Back in the day, 1031 exchanges were thought to have to be simultaneous exchanges, where person A trades their farm to person B, and at the same time person B trades their farm to person A.
T.J. Starker decided to give up his relinquished property in exchange for replacement property that he would receive later. The IRS did not like this idea at the time. They took Starker to court. The case went all the way to the US Supreme Court, where Starker won on a procedural argument. As a result, we are now able to do non-simultaneous 1031 exchanges.
Defer Capital Gains Taxes with a 1031 Exchange of Real Estate
With a 1031 exchange of real estate, you can defer your capital gains tax burden when you reinvest your net proceeds into qualifying like-kind real estate. The 1031 exchange process is complex and requires a detail-oriented eye to ensure no deadlines are missed and no requirements are overlooked. A qualified intermediary at CPEC1031, LLC can help with all the ins and outs of the 1031 exchange process so you don’t have to. Reach out to our team of 1031 professionals today to learn more about how the 1031 exchange process works and see if you are a good candidate for 1031 treatment.
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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