Will the New Tax Law Lead to an Increase in 1031 Exchanges?

There have been a lot of questions surrounding the Tax Cuts & Jobs Act over the past several months. We’re going to continue exploring the ramifications of the TCJA on 1031 exchanges. In this article, we are going to talk about whether or not the new tax law will lead to an increase in 1031 exchanges moving forward.

Real Estate Exchanges

The new Tax Cuts & Jobs Act preserved the 1031 exchange as part of the GOPs tax overhaul. That was welcome news to real estate investors who understand the true benefit of the 1031 exchange as an investment tool and economic driver. Since there were no massive changes to 1031 exchanges of real estate with the new law, one might predict that exchanges of real property will remain relatively steady moving forward.

Goodbye Personal Property Exchanges

The opposite is true for 1031 exchanges of personal property. As we’ve mentioned before, personal property exchanges got the axe with the passage of the TCJA. That means personal property 1031 exchanges will not be allowed moving forward (as of January 1, 2018).

1031 Intermediaries

At CPEC1031, we help clients defer their capital gains tax on the sale of real estate using section 1031 of the Internal Revenue Code. We have been facilitating exchanges across the country for more than twenty years, and have the experience needed to help you through your transaction. We can prepare all of your documents for and advise you of your options every step of the way. Contact us today to speak with one of our skilled 1031 exchange qualified intermediaries.

• Start Your Exchange: If you have questions about 1031 exchanges and the TCJA, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

3 Helpful Online Resources for Your Next 1031 Exchange

1031 exchanges of real property can be complex, and the more resources you have at your disposal – the better off you’ll be. In this article, we are going to offer up a few helpful online resources that you can use during your next 1031 exchange of real estate.

Capital Gains Calculator

Deferring capital gains taxes is the number 1 reason to do a 1031 exchange for most people. But how much money will you actually defer with your exchange?

Use our free online calculator to determine your potential capital gains tax burden.

1031 Exchange Glossary

There are many terms that fly around during a typical 1031 exchange: boot, constructive receipt, like-kind. For those who haven’t done a 1031 exchange before, things can quickly get confusing.

Check out our extensive glossary of 1031 exchange terms.

45 / 180 Day Calculator

All 1031 exchanges have to be completed by set deadlines. In general, you have 180 days total to complete your exchange, with the first 45 of those days set aside as the time to identify your replacement property.

Use our free online calculator to determine your 1031 exchange deadlines.

Contact a Minnesota Qualified Intermediary

The qualified intermediaries at CPEC1031 have been helping investors or all sizes with their like-kind exchanges of real estate for decades. If you are considering a 1031 exchange of real estate, we can help you prepare the necessary documents, answer your questions, and advise you throughout the process. Reach out to us today to speak with one of our highly skilled 1031 intermediaries and get the ball rolling on your exchange!

• Start Your Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchanges & Financial Planning

1031 exchanges can be a great tool to use as you plan for your financial future. This article is all about 1031 exchanges and financial planning. Here are a few ways 1031 exchanges can play an integral role in financial planning:

• Exchange into less management intensive property. If you currently own a management intensive property like an apartment complex, a 1031 exchange is a great way to exchange out of that property and into a different property that is less management intensive.

• Defer Your Capital Gains Tax. If you have a piece of property that you’re looking to sell, a 1031 exchange is a great way to avoid capital gains taxes on the sale of that property, while keeping your money working for you in a continued investment.

Consult with Your Financial Planner

It goes without saying that every person’s situation is different and should be treated as such. Before you make any decisions, be sure to consult with your financial planner to discuss how a 1031 exchange may fit into your financial plan.

Get Started with Your 1031 Exchange

A 1031 exchange is a great tool for deferring your capital gains taxes on the sale of real estate. But there are many potential traps for the unwary. A qualified intermediary can advise you on your exchange and make sure you don’t fall victim to any such traps during the course of your 1031 exchange. Reach out to us today to get your 1031 exchange started. Our primary office is located in the heart of downtown Minneapolis, but we work with clients across the Twin Cities, Minnesota, and the entire United States.

• Start Your Exchange: If you have questions about how a 1031 exchange might fit into your financial plan, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Are 1031 Exchanges More Difficult After the New Tax Law Passed?

People have a lot of questions about 1031 exchanges as they relate to the new tax bill that was passed late last year and went into effect the first of this year. In this article, we are going to delve into whether 1031 exchanges are more difficult now that the new tax law has gone into effect.

Exchanging Real Estate

The new tax law preserved 1031 real estate exchanges, meaning they are still a viable option for investors. In that sense, like-kind exchanges of real estate are no more difficult now than they were before the passage of the new tax bill.

Personal Property Exchanges

1031 exchanges of personal property, however, are a different story. The new tax law that went into effect on January 1, 2018 excludes personal property outright from 1031 exchange treatment. So personal property exchanges are a lot more difficult since the new tax law went into effects – that is to say, impossible.

Intermediaries for 1031 Exchanges

If you are considering a like-kind exchange of real estate, your first step should be to contact a qualified intermediary who can get you started with the process. A 1031 intermediary acts as a sort of guide throughout the course of your exchange. They will advise you, prepare your necessary exchange documents, and answer all of your questions that arise. At CPEC1031, we have been helping investors of all sizes with their real estate exchanges for more than twenty years. Contact our Minnesota qualified intermediaries today to set up a time to chat about your 1031 real estate exchange.

• Start Your Exchange: If you have questions about 1031 exchanges and the new tax law, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

What You Need to Know About 1031 Parking Exchanges

There are numerous types of 1031 exchanges. Finding the right one for your situation is important, but it can be difficult if you aren’t familiar with the options available to you. This article is all about the 1031 parking exchange. We’ll discuss what a parking exchange is and when it can be useful in deferring capital gains taxes on the sale of real estate.

What is a Parking Exchange?

A parking exchange is essentially another name for a reverse exchange, in which the taxpayer “parks” their replacement property with an EAT (Exchange Accommodation Titleholder) while they wait for their exchange to complete. In a reverse exchange, the taxpayer acquires their replacement property before selling their relinquished property. However, the exchangor is not allowed to simultaneously hold title to both their relinquished property and their replacement property. This isn’t an issue in a typical forward exchange, but it does become an issue with a reverse exchange. The solution is to park the replacement property with the EAT until the taxpayer is ready to finish their exchange and sell the relinquished property.

Get Started with Your 1031 Exchange

To get started with your 1031 real estate exchange, contact a qualified intermediary today. The team of intermediaries at CPEC1031 has been providing 1031 exchange services to clients in Minnesota and across the country for more than twenty years. We have the knowledge and the expertise needed to ensure that your exchange is successful. Contact us today at our downtown Minneapolis office to set up a time to chat with one of our 1031 exchange specialists.

• Start Your Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved