1031 Exchange 101: Calculating Your Exchange Deadlines

There are a lot of numbers, rules, and regulations to keep track of in a 1031 exchange. In this article, we are going to offer an easy method for calculating your deadlines in a like-kind exchange.

Like-Kind Exchange Deadlines

There are two extremely important deadlines to keep in the back of your head when conducting a 1031 exchange. They are:

• 180 Days. This is the total amount of time you have to finish your exchange – from the time you sell your relinquished property, to the time you close on your replacement property.

• 45 Days. The first 45 days of your 180 day exchange period are specifically set aside as your identification period. This is the time you have to identify in writing all the replacement properties that you want to exchange into.

Failure to meet these deadlines can result in a failed 1031 exchange.

1031 Exchange Calculator

For the convenience of our clients, we have put together a simple and free online calculator that will help you determine your 1031 exchange deadlines.

Click here to use the free 1031 exchange calculator.

Commercial Real Estate Exchanges

If you have any questions about the deadlines surrounding your 1031 exchange, don’t hesitate to reach out to the like-kind exchange professionals at CPEC1031, LLC. Our qualified intermediaries have been helping taxpayers in Minnesota and across the country with their like-kind exchanges of real property for decades. Working with a qualified intermediary can significantly simplify the 1031 exchange process for you. We will guide you, advise you, and prepare all your 1031 exchange documents to ensure you are ready when it comes time to close. Our primary office is locate in Minneapolis – but we work with clients throughout the Twin Cities, greater Minnesota, the Midwest, and all 50 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

How to Request a 1031 Exchange Presentation from a Qualified Intermediary

Our resident 1031 exchange guru – Jeff Peterson regularly gives live presentations, and CE classes about 1031 exchanges and related topics. Did you know that you can request a presentation from Jeff at any time? Here’s some more information on how to do so.

1031 Exchange Presentations

Over the course of his twenty years facilitating 1031 exchanges, Jeff Peterson has given countless presentations and classes on 1031 exchange topics to real estate professionals, lawyers, CPAs, and others. Many people consider Jeff as a go-to instructor for 1031 exchange topics because of his valuable insight, and dynamic skills as a presenter.

If you are looking for someone to speak about 1031 exchanges at your next event, contact Jeff today to request a presentation.

To request a presentation from Jeff, fill out the form here.

1031 Exchanges in Minnesota

If you want to learn more about the tax-saving benefits of a 1031 exchange, contact a qualified intermediary today. The intermediaries at CPEC1031, LLC have more than two decades of experience facilitating exchanges of real estate for clients. We can advise you on the specifics of your exchange and prepare everything you need for closing. Contact us today at our downtown Minneapolis office to learn more. We provide 1031 exchange services to clients throughout the state of Minnesota and across 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange 101: How to Begin Your Exchange

There are a lot of moving parts in a 1031 exchange, and it can be overwhelming to taxpayers who don’t even know how to open an order for a 1031 exchange. But we’re here to help! This article provides a step by step guide to opening a 1031 exchange order – specifically the information you need to compile to get things started.

Taxpayer (Exchangor) Information

First, you’ll need to compile some information about the taxpayer conducting the exchange. In particular, you’ll need the following info for all taxpayers involved in the exchange:

• Name

• Phone number

• Addresse

• Email

• Social security number

Relinquished Property Information

Next, you’ll need to get together some information on the relinquished property that you plan to sell in the exchange:

• Property address

• Projected closing date

• Sale price

• Contact information of the relinquished property realtor

• Contact information of the title company closing the transaction

• Contact information of the accountant/attorney involved in the transaction

Replacement Property Information

Finally, you need to gather some essential information about the replacement property that you intent to exchange into:

• Property address

• Projected closing date

• Purchase price

• Contact information of the replacement property realtor

• Contact information of the title company closing the transaction

• Contact information of the accountant/attorney involved in the transaction

Set up Your Real Estate Exchange Today!

CPEC1031, LLC is an established 1031 exchange company with more than two decades of experience facilitating real estate exchanges in the state of Minnesota and around the country. We can work with you and any other professionals on your team who are involved in your real estate transaction, to ensure a smooth process. Give us a call today to speak with one of our experienced qualified intermediaries about your exchange and defer your capital gains taxes!

• 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

Why Restricting 1031 Exchanges Would Decrease Reinvestment in Minority Communities

For 100 years, 1031 exchanges have allowed investors to defer capital gains taxes from the sale of commercial real estate and reinvest that money into new properties. The strategic reinvestment in redeveloping underperforming properties generates numerous economic benefits including:

• Jobs

• Labor income

• Property taxes and Federal taxes (far in excess of the Federal taxes deferred)  

In recent years, the Black American community has increased its share of the commercial real estate investment market through the use of 1031 like-kind exchanges. This has allowed many to make critical reinvestments in their communities, while simultaneously building personal wealth.

The American Families Plan’s proposed cap on 1031 exchanges at $500,000 is shortsighted and counterproductive for many reasons. Restricting 1031 exchanges right now would severely diminish many taxpayers’ ability and willingness to reinvest in commercial real estate and redevelop properties.

Recovering from the Pandemic

COVID-19 has forced countless shopping malls, hotels, office buildings, and restaurants across the nation to close their doors. We will need substantial reinvestment from every available resource to redevelop commercial spaces if our national, regional and local economies are to regain strength.

1031 exchanges encourage that needed reinvestment.

Nationally, Ernst & Young estimated that the reinvestment through 1031 exchanges for the coming year will create more than 560,000 new jobs paying more than $27.5 billion in labor income, generate $14 billion in federal, state and local taxes and add $55 billion to the GDP.

For many middle-class Black Americans, 1031 exchanges have presented new opportunities to:

• Plan for a comfortable retirement

• Create intergenerational wealth

• Grow business interests organically without overreliance on debt

• Reinvest in their communities

A cap on 1031 exchanges would remove those opportunities and reinstall daunting barriers to the commercial real estate marketplace at a time our economy needs every willing investor.  

• 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

Why You Can’t 1031 Exchange Bitcoin & Other Cryptocurrency

Cryptocurrency is still relatively new and, as a result, there are a lot of questions about how it operates and how it should be taxed. One question many people have is “can cryptocurrency be exchanged under section 1031?” In this article, we are going to discuss whether or not it’s possible to exchange bitcoin and other cryptocurrency under section 1031 of the Internal Revenue Code.

Real Property vs. Personal Property

The short answer to the question at hand is, no. Cryptocurrency cannot be exchanged under section 1031 of the Internal Revenue Code. But why is that the case? It all comes down to real property vs. personal property.

The question of exchanging cryptocurrency was hotly debated until recently when the Tax Cuts & Jobs Act went into effect. Prior to this law, taxpayers could defer their capital gains taxes on both real estate and personal property. The TCJA explicitly limited 1031 exchanges to real property, and excludes personal property outright. Since cryptocurrency is not classified as real property, it is not allowable under section 1031.

Get the 1031 Exchange Help You Need

Our 1031 intermediaries have twenty years of experience in the 1031 exchange field and understand the like-kind exchange process inside and out. We can guide you through each step of the process, while advising you, answering questions, and preparing your 1031 documentation. Reach out to the qualified intermediaries at CPEC1031, LLC today to learn more about your 1031 exchange options. Our main office is located in downtown Minneapolis but we serve clients throughout Minnesota and 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved