Does My 1031 Exchange Period Include Weekends & Holidays?

One of the first things you need to know about a 1031 exchange is that you only have a limited amount of time to complete your 1031 exchange. Specifically, you have 180 days in total from the start to the end of your exchange. In this article, we are going to discuss the 1031 exchange period and whether or not it includes weekends and holidays.

Defining Your Exchange Period

Your exchange period begins when you sell your relinquished property (or when you acquire your replacement property if you are doing a reverse exchange). From that point on you have 180 days to complete your exchange. The first forth-five of those days are set aside as your identification period – the time in which you have to identify in writing all of your replacement properties.

Weekends & Holidays

Weekends and holidays are not excluded from your exchange period. All weekends and holidays count as part of your 180 days. Furthermore, if your 180 day deadline falls on a Saturday, Sunday, or on a holiday, you will not get an extension.

1031 Intermediaries in Minneapolis, MN

The intermediaries at CPEC1031 work with clients in all real estate industries on their 1031 exchanges. With more than twenty years of experience, our intermediaries have the skills needed to facilitate your exchange from start to finish. Contact us at our downtown Minneapolis office today to speak with an intermediary about your like-kind exchange and defer your capital gains taxes on your next real estate sale.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Why 1031 Exchange Land Swaps are a Great Investment

Swapping land in a 1031 exchange can lead to big payoffs down the line. In this article, we are going to talk about how 1031 exchange land swaps can result in big results over the long-term.

Recapping the Benefits of Land Exchanges

Section 1031 of the Internal Revenue Code offers all taxpayers the opportunity of deferring their capital gains taxes when they sell real estate so long as they meet certain guidelines. First, the exchanged land must be held for investment or business purposes (not for personal use). Second, the exchange must be completed within 180 days and abide by other strict timeframes. These are just a couple of many rules that must be satisfied in a 1031 exchange. When done correctly, the taxpayer doing the exchange is able to avoid a big tax bill on the sale of their property.

Over the long-term, the taxpayer can watch their investment grow in their replacement property. If and when you want to sell that replacement property, you can consider doing another 1031 exchange to keep the investment ball rolling!

Minnesota 1031 Exchange Professionals

The qualified intermediaries at CPEC1031 have over two decades of experience working on 1031 exchanges. A 1031 exchange accommodator can help you through every stage of your 1031 exchange from start to finish. Specifically, our intermediaries can prepare all of your documentation, advise you on what replacement properties to purchase, and answer all of your questions along the way. Contact us today to get started with your 1031 exchange of real estate. Our primary office is located in the heart of downtown Minneapolis but we work with clients all over the state of Minnesota, as well as throughout the 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Pros & Cons of a 1031 Exchange

1031 exchanges offer a great vehicle for deferring capital gains taxes – but they’re not for everyone. Just like any other real estate decision, you should carefully weigh the pros and cons to see if a 1031 exchange is the right option for you. In this article, we are going to lay out some of the pros and cons of a 1031 exchange of real estate.

Pro: Tax Deferral

The number one benefit of a 1031 exchange is that it allows you to defer your capital gains taxes when you sell real estate.

Con: You Don’t Get to Keep Your Proceeds

In any 1031 exchange, you need to move your net proceeds into a new (bigger and better) replacement property. That means you do not get to pocket any of the proceeds from the sale. This may be an issue for taxpayers who are in need of liquid assets.

Pro: Greater Investment in the Long-run

Even though you aren’t able to pocket your sales proceeds, the amount of money you save in tax deferral, as well as the money that will compound in your continued investment make for a greater investment in the long-run.

Real Estate Like-Kind Exchanges

At CPEC1031 we work with clients all over the state of Minnesota, as well as across the country, on their 1031 exchanges of real estate. Our qualified intermediaries have twenty years of experience and can help you with your 1031 exchange documents and answer all of your questions. Reach out to us today if you want to learn more about the benefits of the 1031 exchange, or to start your real property exchange. Our main office is 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Can You 1031 Exchange Property in Two Different Industries?

1031 exchanges are very versatile and allow you to exchange out of and into different market segments. In this article, we are going to talk about how you can 1031 exchange from one industry into another.

Like-Kind

When it comes to 1031 exchanges, one of the most important rules you need to follow is that all property involved needs to be like-kind. Thankfully, the term “like-kind” in the realm of real estate is very broadly construed. Nearly all qualified real estate is considered like-kind to all other qualified real property. That means you can do a like-kind exchange from a relinquished property in one industry into a replacement property in a completely different industry – so long as you meet all the other requirements.

An Example

Let’s say you own an apartment complex and you are interested in selling that property and getting into another market segment. You could sell your apartment complex in a 1031 transaction, and roll your sales proceeds into a hotel (your replacement property). This showcases the versatility of the 1031 exchange.

1031 Exchanges in St. Paul, MN

1031 exchanges offer a fantastic way to defer your capital gains tax when you sell real estate. Instead of writing a check to the government, you can move your hard-earned money into a continued investment and keep your money working for you over time. At CPEC1031our qualified intermediaries have over twenty years of experience facilitating 1031 exchanges of all shapes and sizes. Contact us today to set up a time to chat about your 1031 exchange and see how we can help you save money on your next real estate transaction.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Now is the Perfect Time to Learn About 1031 Exchanges

The real estate market is hot, and it’s a great time to sell real property, but that can also mean more taxes. In this article, we’re going to talk about why now is the perfect time to learn more about section 1031 of the Internal Revenue Code.

Hot Seller’s Market

The real estate market is very hot right now, which is a great thing for sellers whose properties have increased in value. However, there are two sides to every coin. If your property has increased in value and you sell it for a high price, your capital gains taxes on the sale of that property are also going to be high. That means one thing – a bigger tax bill.

Avoiding a Tax Bill

If you want to avoid a big tax bill, as I imagine most investors do, a 1031 exchange can help! Using a like-kind exchange, you can defer your capital gains taxes on the sale of real estate. That being said, you are required to meet certain requirements outlined by the IRS in order for your exchange to succeed. You need to complete your exchange within 180 days, your property needs to qualify for 1031 treatment, and you have to exchange into like-kind property.

Like-Kind Intermediaries

At CPEC1031, your 1031 exchange is our business. With more than twenty years of experience, our qualified intermediaries have the skills and experience needed to guide you through the avenues of the like-kind exchange process – from the sale of your relinquished property, to the purchase of your replacement property. Contact us at our office in downtown Minneapolis to discuss the details of your exchange and start the tax-deferral process today!

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved