Why Your Accountant Can’t Act As Your Qualified Intermediary

When searching for a qualified intermediary, many people first think of their CPA or accountant, but that’s a common mistake. In this article, we are going to discuss why your accountant (or any other related party) can’t act as your 1031 qualified intermediary.

1031 Exchanges & Related Parties

When most people hear the word “related party” they assume it means family members, and it makes sense that a direct relative wouldn’t be able to act as your neutral third-party intermediary for your exchange. But when it comes to 1031 exchanges, “related party” applies to more than just blood relatives.

In short, a qualified intermediary needs to be a neutral third party operator, completely unbeholden to the taxpayer conducting the 1031 exchange.

The following is a list of related parties that would be barred from acting as a qualified intermediary on your behalf:

• Your CPA or accountant, lawyer, real estate agent, or anyone else who has provided you with professional services in the past two year period.

• Your employee.

• Your blood relatives.

It’s always a good idea to work with a qualified intermediary that is completely neutral.

Qualified Intermediaries with Decades of Experience

If you’re considering a 1031 exchange of your investment or business real estate, speak with a qualified intermediary at CPEC1031, LLC. With decades of experience, our intermediaries are well-equipped to help you through the entire like-kind exchange process. Whether you’re doing a forward exchange, reverse exchange, or build-to-suit exchange, we can help you save money in capital gains taxes. Reach out to our team at our Minneapolis office today to learn more about the 1031 exchange process and how we can help you with 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Video – Don’t Take Boot During the 1031 Exchange Process

In a 1031 exchange, you need to re-invest all of your equity from your relinquished property into your replacement property. If you take any of the cash from the sale of your relinquished property and redeploy it into your pocket, the IRS will rightfully tax you on that cash boot. During the 1031 exchange process, don’t take any boot (cash or other property that you receive in the exchange process).

Realize the Tax-Saving Power of 1031 Exchanges

Are you ready to realize the tax-saving power of section 1031 of the Internal Revenue Code? If so, you’ve come to the right place. CPEC1031, LLC specializes in facilitating like-kind exchanges under section 1031 across the United States. We can help you through the entire 1031 exchange process by answering your queries, preparing documentation, and helping ensure you are set up to defer your capital gains taxes. Contact us today at our Twin Cities office to set up a time to chat about your exchange. We are located in downtown Minneapolis, but we work with taxpayers from 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How to Know When It’s The Right Time to Do a 1031 Exchange

When it comes time to sell a piece of investment or business real estate, you have a few options at your disposal. You could sell the property and pocket the proceeds, or do a 1031 exchange and defer your capital gains taxes in the process. Deciding between these options can be difficult. In this article, we are going to discuss how to determine when it’s the right time to do a 1031 exchange.

Do You Need Liquidity Fast?

If you need cash fast, then your best bet is to do a straight forward sale of the real estate. This allows you to pocket the net proceeds from the sale. However, you will need to pay capital gains taxes on these sales proceeds. Depending on the size of your property, this can be a substantial tax burden.

Do You Want to Defer Your Taxes & Compound Your Wealth Over Time?

If you are able to delay your gratification and not pocket the net proceeds, you can defer your capital gains taxes with a 1031 exchange. This allows you to reinvest your sales proceeds into a bigger replacement property and keep your hard-earned cash growing in a continuation of your investment.

Consider a 1031 Exchange

Get the most out of your investment property sale by considering a 1031 exchange. Under section 1031 of the Internal Revenue Code, you can defer your capital gains tax burden on the sale of real estate that’s held for investment or business purposes. If you have questions about the 1031 exchange process, contact the qualified intermediaries at CPEC1031, LLC. Our team has been facilitating like-kind exchanges for more than two decades. We can help you through the entire exchange process from top to bottom, making sure you understand what’s happening at every stage.

• 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 a Trust Hold 1031 Replacement Property?

What if a taxpayer sells investment property individually but wants the 1031 replacement property titled in a trust? Will they still be able to qualify for 1031 exchange treatment?

The Same Taxpayer Question

The key question we need to answer here is whether the person conducting the 1031 exchange and the trust are treated as the same taxpayer for federal income-tax purposes.

A grantor trust may be treated as the individual owner for tax purposes. A non-grantor trust may be a separate taxpayer. That essential difference can determine whether the proposed title creates a same-taxpayer issue.

Before the replacement property closes, it’s important to confirm the trust’s tax treatment with your tax and estate-planning advisors. As we often discuss, a successful 1031 exchange requires a strong team of advisors that consists of a qualified intermediary, CPA/accountant, lawyer, financial planner, and more. Be sure to loop all of these advisors into the process so that you are set up for success.

Section 1031 of the IRC

When you do a 1031 exchange of your investment real estate, you can defer capital gains taxes and compound your hard-earned wealth over time. Savvy investors utilize section 1031 of the Internal Revenue Code to complement their long-term wealth-building strategy. Any investor can conduct a 1031 exchange as long as their property qualifies. At CPEC1031, LLC we help investors large and small facilitate exchanges of all types. Reach out to our team today to set up a time to speak with a qualified intermediary about your next like-kind exchange under section 1031 of the IRC.

• 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

Will 1031 Exchanges Change in the Future?

1031 exchanges are a wonderful tax-saving strategy and many investors want to know what the future holds for section 1031. In this article, we are going to talk about the history of 1031 exchanges and how they might change in the future.

A Brief History of 1031 Exchanges

Many people don’t realize that 1031 exchanges have been around for a long time. In some form or another, 1031 exchanges have existed as a part of the United States tax code for more that a century. Section 1031 has also gone through many changes over its lifetime. The most recent major change came with the 2018 Tax Cuts and Jobs Act, which restricted 1031 exchanges to real estate and excluded personal property exchanges. Section 1031 is an ever evolving provision.

The Future is Uncertain

The truth is that nobody has a crystal ball – the future of the 1031 exchange is uncertain. 1031 exchanges are often under attack by both political parties for various reasons. That being said, section 1031 has been a part of the US tax code in one form or another for over 100 years. While 1031 exchanges may not look identical in the years and decades to come, their many benefits for investors and the economy at large make for great reasons to keep them around.

Defer Your Capital Gains Taxes with a 1031 Exchange

Defer your capital gains taxes with a 1031 exchange of real estate held for investment or business use. Section 1031 of the Internal Revenue Code is available for any US taxpayer to utilize as a tool for tax deferral. Tax-savvy investors have been 1031 exchanging property in one form or another for over 100 years. Contact the qualified intermediaries at CPEC1031, LLC to learn about the like-kind exchange process and see if your property is a good candidate for 1031 tax deferral. You can find us at our main office 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