What Our Clients Say About Our 1031 Exchange Services

We can talk about our services all day long, but nothing is more powerful than the words of our clients. Here are a few clients we’ve worked with who had great things to say about our services.

Ryan O’Neill

It has been such a pleasure for our team, The Minnesota Real Estate Team with RE/MAX Advantage Plus, to work with Jeff Peterson and CPEC1031. Each month we have provided real estate investing seminars. With these seminars, we need to have a trusted and "go to" 1031 Exchange company and expert we can refer clients to. Jeff and his team are extremely knowledgeable, hard working, and truly committed to the best interest of each of our clients. Thank you so very much for all that you do for our team and our clients, Jeff. It has been a privilege for us to work with you and your entire team. Cheers! 

Randy Hoese

As a 20+ year real estate agent & broker in the Twin Cities apartment market, I’ve been involved in many 1031 Exchanges. Over the years, I’ve also worked with and referred different exchange companies to my clients.  Jeff Peterson with CPEC1031is recognized as the expert in this area of a real estate sale & he’s my go to guy for anything related to real estate exchanges. He is very experienced, knowledgeable and easily accessible for myself and my clients when we have questions.  I certainly recommend talking to Jeff when you’re considering selling an investment property.  1031 Exchanges can sometimes be complicated so don’t risk losing any of your hard earned money. Hire the best & you’ll be glad you did.

Nancy McKenzie

It is without hesitation or reservation and with great confidence that I offer my highest possible recommendation of Jeff Peterson and the services received from CPEC.  5 stars, A+, Outstanding – all fair characterizations of the professional services and attention delivered by Jeff Peterson. 

As the trustee of a supplemental needs trust, I became involved in an interesting yet somewhat complicated series of real estate transactions.  Some other firms had failed to provide appropriate guidance yielding a convoluted mess.  Then, I was introduced to Jeff.  He has all of the answers and knew where all of the potential issues were.  Jeff helped guide me through the intricacies of a 1031 exchange, various IRS forms, and applicable case law.  Jeff’s technical competence and moral compass are above reproach.  His nickname as “Professor 1031” is well deserved.

It was a pleasure to have the service of a real expert and true professional. 

CPEC1031

At CPEC1031, we have over two decades of experience working with clients on their 1031 exchanges. Our qualified intermediaries can help you through each and every stage of your commercial transaction. Contact one of our qualified intermediaries today to learn more about the 1031 exchange process and how we can help you save money on your next real estate sale. You can find us at our main office in downtown Minneapolis, or at one of our satellite offices around 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The 1031 / 1033 Exchange Combo

We are working with a client that would like to 1031 exchange out of a property that recently went through the Eminent Domain process for a road-widening project in front of the property. Ideally, they want to combine funds from both transactions into one exchange property. Is this possible?

The property is owned as an LLC. How does that complicate the ability to do individual exchanges? Would they have to convert to a TIC in order to go their separate ways? If so, how long would the process take? 

The short answer is yes. This is possible by doing a 1031 / 1033 exchange combo. However, the “value” of the Replacement Property may need to be high enough to cover both a 1033 and 1031.

1031 Exchange Company

Looking for assistance with your 1031 exchange? You’ve come to the right place! At CPEC1031, our qualified intermediaries have over two decades of experience facilitating transactions under section 1031 of the Internal Revenue Code. We can help you through the entire process and ensure that you are well-prepared for the closing table. Contact us today at our downtown Minneapolis office to learn more!

• 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The Benefits of Doing a 1031 Exchange During a Recession

With a potential recession looming on the horizon, many real estate investors are weighing their options. While selling and sitting on your property are both viable options, a 1031 exchange is another option that many investors don’t consider. In this article, we’re going to explain the benefits of conducting a 1031 exchange in a recession.

Defer Your Taxes

The biggest benefit of a 1031 exchange (in a recession or an economic boom) is that it allows you to defer your capital gains taxes when selling real estate. These taxes can add up to a hefty bill, depending on your specific property – so much so that they often deter owners from selling at all. Well, a 1031 exchange incentivizes you to sell your property by removing this tax liability.

Replacement Property Opportunities

A recession may bring the total value of your property down, which can make investors hesitant to sell. However, that decreased sales price would also apply to any potential replacement property – meaning a recession may be a good time to purchase new replacement property at a lower price. A 1031 exchange would allow you to do that while simultaneously deferring your capital gains taxes.

Save Money in Capital Gains Taxes

Looking to save money in capital gains taxes when selling real estate? Then a 1031 exchange might be right for you! By reinvesting your sales proceeds into a replacement property, a 1031 exchange allows you to defer your capital gains taxes on the sale of real estate. The qualified intermediaries at CPEC1031 have over twenty years of experience facilitating exchanges of all shapes and sizes. Let us help you through the ins and outs of your next like-kind 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Maximizing The Impact of Your 1031 Exchange

Without the right resources at hand, a 1031 exchange can go horribly wrong. In this article, we are going to discuss a few tips for maximizing the impact of your 1031 exchange.

Work with a Qualified Intermediary

Working with a skilled and experienced qualified intermediary on your exchange is the best way to maximize its impact and ensure its success. An intermediary is a pro on all things related to section 1031 and will be able to advise you on the right steps to take as you progress.

Line up Your Replacement Property

Once you start your 1031 exchange, you only have 180 days to complete it. And you only have 45 days to identify your replacement property. This can lead to a huge time crunch for taxpayers who sell their relinquished property before lining up replacement property. While you don’t need to have your replacement property completely locked down before you begin the process, it’s a good practice to at least do some preliminary research so you are well prepared.

Like-Kind Exchanges Under Section 1031 of the IRC

1031 exchanges apply to every United States taxpayer who owns qualifying property. See how a 1031 exchange can benefit you by contacting a qualified intermediary at CPEC1031. Reach out to our 1031 exchange professionals today to learn more about the process and how we can help you save money in capital gains taxes. Our primary office is located in the heart of downtown Minneapolis. You can also find us at one of our satellite offices around 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Can you do a 1031 on Property Previously Sold on a Contract for Deed, Installment Sale, or Executory Contract?

Recently, a client came to us with a unique 1031 exchange question. The client signed a contract for deed 6 years ago that was scheduled to last 20 years. Their borrower is electing to pay off early and the client is interested in a 1031 exchange. Does the clock for identification and closing start when the contract for deed was signed or when possession changes hands when the note is paid off?

Typically, the clock starts running when the contract for deed was signed.

For federal tax purposes, the vendee on the contract for deed generally is the owner, and the vendor is merely holding bare legal title as an enforcement mechanism to compel payments and full performance of the vendee. Contracts can differ depending on terms – but this is generally the case.

The vendee has exclusive possession and use of the property, bears the risk of loss for destruction, pays the real estate property taxes, takes the deprecation and tax deductions related to business expenses of the property = Vendee is the Owner.

Vendor is really a creditor now holding a security interest (his legal title under the CD is an enforceable claim or lien which gives the vendor the potential right to cancel the CD and repossess all or part of a property as collateral for the instalment loan) which will not qualify for 1031.

Under the pre-2017 version of 1031 exchanges, it more explicitly excluded “notes, other securities or evidence of indebtedness” from 1031.

• 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved