How to Improve Your Chances of Deferring 100% of Your Capital Gains Taxes in a 1031 Exchange

The ultimate goal of any 1031 exchange is 100% tax deferral, but in order to do that you need to abide by various rules and requirements. In this article, we are going to discuss how to improve your odds of deferring 100% of your capital gains tax burden when doing a 1031 exchange.

Keep an Eye on Your Timelines

In order to complete a successful 1031 exchange, you have to finish all necessary tasks within your allotted time periods. Specifically, you have 180 days in total from the beginning of your exchange to the end. The first 45 of those days (running concurrently) are set aside as your identification period. You have to identify, in writing, your replacement properties within those 45 days. Fail to meet either of these deadlines and you will not be able to defer your capital gains taxes on the sale.

Monitor Your Value, Equity & Debt

You also need to monitor your value, equity, and debt throughout the 1031 exchange. In order to defer 100% of your gains, you need to make sure that your replacement property is equal to or greater than your relinquished property in the categories of value, equity, and debt. Fail to meet these thresholds and you may only be able to partially defer your capital gains taxes.

Take the First Step in Your 1031 Exchange Journey

Take the first step in your 1031 exchange journey by contacting a qualified intermediary at CPEC1031, LLC. Our team has been facilitating 1031 transactions for more than two decades. We have the knowledge and expertise needed to ensure you are set up to defer 100% of your capital gains tax burden when selling real estate in a 1031 exchange. Let us walk you through the process and make sure you have everything set up properly. Contact us today at our Twin Cities office in downtown Minneapolis to learn more about our services and how we can help you defer 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Can You Do a 1031 Exchange with Corporate Stock?

A common question many taxpayers have about 1031 exchanges is: “can I do a 1031 exchange involving corporate stock?”

In essence, a corporation may own real estate, but selling the stock of that corporation is not the same thing as selling the real estate. This is an important distinction that can make or break a 1031 exchange.

If the transaction is structured as a “stock sale,” it generally will NOT qualify for 1031 treatment. Stock is specifically excluded from 1031 treatment. If the corporation is selling its assets, like qualifying real property instead, the corporation can complete a 1031 exchange and defer gain, provided the exchange requirements are met. This is often referred to as an “asset sale” as opposed to a stock sale.

If you are considering a sale involving a corporation that owns low basis real estate, this is an important issue to address before the deal is structured, not after.

Here are a few essential considerations when considering 1031 exchanges involving corporations:

• 1031 applies to qualifying real property

• Corporate stock does not qualify

• Stocks and securities are exclude

• The corporation may be able to exchange the real estate asset

1031 Intermediaries in the Twin Cities

1031 exchanges may seem simple but they can quickly get convoluted. It’s important to have a 1031 intermediary on your team to make sure the process goes as smoothly as possible. CPEC1031, LLC has been working with taxpayers on their 1031 exchanges for the past two decades. We have extensive experience facilitating forward exchanges, reverse exchanges, and build-to-suit exchanges. No matter what type of exchange you’re dealing with or where your property is located, we can help you defer capital gains taxes with a 1031 transaction. Contact us today at our Twin Cities 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

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