Step-by-Step Checklist for Completing a 1031 Exchange

The 1031 exchange process has many important deadlines and requirements that you need to meet in order to have a successful exchange. This article will offer up a step-by-step checklist for completing a 1031 exchange of real estate.

Step 1: Planning & Preparation

The first step in the 1031 exchange process is one that many overlook. Before the 1031 exchange clock starts ticking, you should begin with planning and preparation. Enter into an exchange agreement with a qualified intermediary before you sell your relinquished property to make sure you have everything set up for a successful exchange.

Step 2: Selling Your Relinquished Property

Your exchange begins in earnest when you sell your relinquished property. This sale automatically starts the clock on your 180 day exchange period. You must complete your exchange by the 180th day or else your exchange will fail.

Step 3: Identifying Your Replacement Property

The first 45 days of your 180 day exchange period are what’s known as your “identification period.” During this time, you must give written identification of the replacement properties that you intend to acquire in the exchange.

Step 4: Acquiring Your Replacement Property

Before the 180th day of your exchange period, you must acquire your identified replacement property. If you satisfy all the requirements in these steps you will be able to defer your capital gains tax burden!

Find a Qualified Intermediary for Your 1031 Exchange of Real Estate

Contact CPEC1031, LLC to speak with a qualified intermediary about your next 1031 exchange of real estate. Our team of intermediaries has more than two decades of experience facilitating 1031 exchange of real estate in Minnesota and across the United States. We can help you through all the details of your next exchange by preparing documentation, answering your 1031 exchange questions, and guiding you through the 1031 exchange process. Reach out to our team of intermediaries at our Twin Cities office, located 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How a 1031 Exchange Helps You Defer Your Tax & Maximize Your Gain

Section 1031 has many benefits to taxpayers who own investment real estate. In this article, we are going to discuss how exactly a 1031 exchange allows you to defer your capital gains taxes and maximize your gain.

Deferring Capital Gains Taxes

When structured correctly, a 1031 exchange under section 1031 of the Internal Revenue Code allows you to defer up to 100% of your capital gains tax burden during the sale of qualifying real estate. All real estate involved in the transaction must be like-kind and held for investment or business purposes. There are also strict time periods (the 180 day exchange period, and the 45 day identification period) that you must abide by in order to complete a successful 1031 exchange. When you meet all the requirements, you can defer your capital gains tax burden and reinvest your net proceeds into a new replacement property.

Maximizing Your Long-Term Gain

Apart from tax deferral, a 1031 exchange also allows you to maximize your long-term gain by reinvesting (tax-free) your net proceeds into a bigger, better replacement property. This allows your hard-earned money to continue growing in a new investment property as part of a long-term investment strategy.

Work with a Qualified Intermediary at CPEC1031, LLC

The qualified intermediaries at CPEC1031, LLC are ready and waiting to assist you with your next 1031 exchange of real property. Our team has been facilitating 1031 exchange across the United States for more than twenty years. We have the skills and know-how to guide you through the 1031 exchange process and make sure you are set up to defer 100% of your capital gains tax burden. Contact us at our downtown Minneapolis offices today to set up a time to speak with someone about the 1031 exchange process and to see if your property qualifies for 1031 treatment.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchange Rules After Tax Reform: What’s Changed?

The most recent major tax reform that impacted 1031 exchanges was the Tax Cuts and Jobs Act (TCJA) of 2017. In this article, we are going to discuss what has changed in the world of 1031 exchanges since the TCJA was signed into law.

No More Personal Property Exchanges

In the realm of 1031 exchanges, the biggest change brought forth by the TCJA was the limiting of personal property exchanges. Prior to the TCJA, taxpayers could 1031 exchange personal property, such as aircraft, artwork, numismatic coins, and more. The TCJA effectively stopped personal property exchanges and limited section 1031 to exchanges of real estate held for investment or business purposes.

Today, you can only do a 1031 exchange of like-kind real estate (not personal property). Remember that any real estate used in a 1031 exchange must also be held for the purposes of investment or business. Your family home that you live in all year long would not be eligible for 1031 exchange treatment.

1031 Exchange Your Investment Property

1031 exchange your investment or business property and defer your associated capital gains tax burden. Section 1031 of the Internal Revenue Code is a powerful provision that is available for all US taxpayers to use. When done correctly, a 1031 exchange allows you to defer your capital gains taxes by reinvesting your net proceeds from the sale of your relinquished property into a new replacement property. It’s important to work with a qualified intermediary throughout the exchange process to ensure you are meeting all the requirements of section 1031. Work with a qualified intermediary at CPEC1031, LLC on your next 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

From Landlord Burnout to Passive Income with a 1031 Exchange

Being a landlord comes with the benefits and the burdens of property ownership. In this article, we are going to explain how a 1031 exchange can help you go from landlord burnout to passive income.

The Downsides of Being a Landlord

Owning a rental property can have great financial benefits, but it also comes with a lot of work. You may have difficult tenants. You need to deal with constant maintenance issues. The list goes on. As they age, many investors who own rental property start to think about a way out of having to deal with the headaches that come with being a landlord. A 1031 exchange is a great solution to this problem.

How a 1031 Exchange can Help

With a 1031 exchange, you can sell your rental property and reinvest into a replacement property that offers more passive income (such as a DST). Best of all, you can defer your capital gains taxes on the sale.

Qualified Intermediaries You Can Trust

A 1031 exchange can be nerve-wracking simply because there’s a lot of money on the line. You want to make sure you have a trusted partner by your side every step of the way to ensure you satisfy all the requirements of section 1031 of the Internal Revenue Code. Put your trust in the qualified intermediaries at CPEC1031, LLC. Our team has been facilitating 1031 exchanges for decades in Minnesota and across the United States. We can help you save money in capital gains taxes. Give us a call today to learn more about the 1031 exchange process.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchanges of Retail Properties

1031 exchanges can involve any like-kind property held for investment or business use – including retail property. In this article, we are going to discuss what you need to know about 1031 exchanges of retail properties.

What Type of Property Can You 1031 Exchange Into?

One of the most important aspects of any 1031 exchange is determining what replacement property you want to exchange into. Many people assume that if they’re selling a retail property they need to acquire a replacement property that’s also retail in nature. That’s not the case! You have a lot more freedom than that when it comes to selecting a replacement property. In fact, you can exchange into any like-kind real estate so long as it’s held for investment or business purposes. That means you can sell a retail property and exchange into an apartment building, a piece of farmland, or a DST. Section 1031 allows you the flexibility to exchange out of and into different real estate markets and industry sectors.

1031 Exchange Services in Minneapolis, MN

CPEC1031, LLC offers 1031 exchange services in Minneapolis, greater Minnesota, and the United States at large. Our qualified intermediaries have more than two decades of experience facilitating forward, reverse, and build-to-suit 1031 exchanges. No matter what type of exchange you are conducting, we have the knowledge and expertise to walk you through the 1031 exchange process and set you up to successfully defer 100% of your taxable gain. Contact us today to learn more about the exchange process and see if your property qualifies for 1031 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved