How to E-Sign Your 1031 Exchange Documents

In a 1031 exchange, there are numerous documents that need to be prepared and signed by the taxpayer conducting the exchange. When exchanges are conducted across different states, this can be tricky. Signing your documents electronically can solve a lot of issues. In this article, we are going to explain how to e-sign your 1031 exchange documents.

E-Signing Your 1031 Documents

We typically recommend using Adobe Echo Sign to Electronically Sign 1031 documents online. This process allows you to prepare and sign your 1031 documents in a matter of minutes rather than days. It is completely secure and legal, and ease to use!

To learn more about how e-signatures work, or how Adobe Echo Sign functions specifically, click here for more information.

Get Help with Your 1031 Exchange

Get help with your 1031 exchange today by contacting a qualified intermediary at CPEC1031. Our intermediaries have more than two decades worth of experience facilitating exchanges for taxpayers in Minnesota and across the United States. We will work with you throughout the exchange process to ensure that you understand everything that’s happening and feel comfortable throughout the process. Contact us today to set up a time to chat about your exchange. Our primary office is located in downtown Minneapolis, but we work with clients 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

1031 Case Study – Camp Grounds

Recently, we had a client come to us with an interesting 1031 exchange situation. This client owns a camp ground and wants to do a 1031 exchange. However, he lives on a portion of the camp ground. Is it possible to do a 1031 exchange in this situation? In this article, we are going to dive into this 1031 exchange case study and talk about the seller’s options.

Camp Ground 1031 Exchange

When sellers live on a portion on the real estate that they are exchanging, 1031 exchanges can get a little tricky. In this particular instance, the seller would want to allocate the gross purchase price into three or more categories:

• 1031 real estate

• 121 principal residence (which must be reasonable and substantiated)

• Non-1031 personal property, goodwill and equipment (sell for remaining book value)

Memorialize this allocation in a written agreement between buyer and seller.

1031 Exchange Professionals

At CPEC1031, our 1031 exchange professionals have over twenty years of experience facilitating exchanges of real property for clients across the United States. Our team can walk you through each and every step of the 1031 exchange process. We can also prepare your documentation and answer all of your burning questions. Contact us today to set up a time to chat with one of our 1031 exchange professionals. Our primary office is located in downtown Minneapolis, but we work with clients throughout the country.

•  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

1031 Exchange Considerations for Farmers

Farmers can benefit greatly from 1031 exchanges of land. However, there are many important things to keep in mind if you are a farmer considering an exchange. In this article, we are going to discuss a few important considerations for farmers looking to exchange their property in a 1031 transaction.

Personal Property Not Allowed

The biggest change in the 1031 exchange realm this year is that personal property is no longer eligible for 1031 exchange treatment. This is a result of the Tax Cuts & Jobs Act that went into effect in early 2018. Thankfully, this act preserved like-kind exchanges of real estate, but it effectively axed exchanges of personal property. That means any items of personal property you own and use for investment or business purposes cannot be exchanged in a 1031 transaction. Here are a few personal property items that cannot be exchanged:

• Livestock

• Agricultural Equipment

• Tractors

Help Through the 1031 Exchange Process

At CPEC1031, we employ the best and brightest qualified intermediaries. With more than two decades worth of experience, we have the skills and expertise to handle even the most complex of 1031 transactions. From preparing paperwork, to helping you identify replacement property, we can guide you through every stage of the 1031 exchange process. Give us a call today to learn more about our 1031 exchange services and to get the process started with your exchange!

•  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

Property that Cannot Be Exchanged Under Section 1031

The Tax Cuts & Jobs Act that was passed late last year and went into effect in early 2018 made numerous changes to the rules governing section 1031 – particularly what can and cannot be exchanged in a 1031 transaction. In this article, we are going to talk about a few types of property that cannot be exchanged under Section 1031 of the Internal Revenue Code.

Non Like-Kind Property

All property involved in a 1031 exchange needs to be like-kind. That means any non like-kind property is not eligible. How do you determine like-kind? Thankfully, the definition is pretty broad when it comes to real estate. But make sure you are only exchanging property that is used for investment or business purposes.

Personal Property

The Tax Cuts & Jobs Act which went into effect earlier this year effectively restricted 1031 exchanges to real property. That means that many items of personal property that were once eligible for 1031 treatment, can no longer be exchanged in such transactions. Here are a few examples of personal property items that can no longer be exchanged:

• Aircraft

• Artwork

• Business Equipment

• Coins & Precious Metals

• Livestock

Is a 1031 Exchange Right for You?

Looking for help with you 1031 exchange of real estate? Our qualified intermediaries are ready and able to walk you through every step of the process – from selling your relinquished property to closing on your new replacement property. At CPEC1031 our intermediaries have over two decades of experience facilitating exchanges in Minnesota and across the country. Contact us today at our downtown Minneapolis office to set up an appointment with one of our intermediaries and see if a 1031 exchange is right for you!

•  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

1031 Exchange Situations to Avoid

The rules surrounding 1031 exchanges are strict and many taxpayers have found themselves in bad situations that could have been avoided with some planning. In this article, we are going to describe a few 1031 exchange situations that should be avoided at all costs.

Trading Down

In a 1031 exchange, your replacement property needs to equal to, or greater than your relinquished property in value, equity, and debt. If you fail to meet these benchmarks with your replacement property, you are essentially “trading down.” This can result in a financial benefit known as boot that is subject to taxation. To avoid this, make sure you are trading up with your replacement property.

Flipping Property

Buying a property, fixing it up, and selling it as soon as possible likely would not qualify for 1031 treatment. In this instance the property might be considered “stock in trade” and would not meet the requirements for a 1031 exchange.

“Dealing” Property

If you trade several properties throughout the course of a year, or exchange a property too quickly after you’ve acquired it, you may be labeled as a dealer, and your 1031 exchanges would not be considered valid.

Defer Your Real Estate Taxes

The qualified intermediaries at CPEC1031 have more than twenty years of experience working with clients throughout the state of Minnesota, and the rest of the country on their 1031 exchanges of real estate. We work hand-in-hand with our clients to make sure they understand the process every step of the way. Contact us today to learn more about the 1031 exchange process and how we can help you defer taxes on your next real estate deal.

• 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