Video – Finding the Strike Zone for 1031 Exchanges

Since it’s baseball season, we should talk about the 1031 exchange “strike zone” – the ideal place you want your property to be in order to set yourself up for success.

The strike zone is property that’s held for investment or business purposes. That’s where you want the “ball” to be. Outside of the strike zone (stuff that doesn’t qualify for 1031 exchange) is inventory, property held primarily for resale, and personal use property (i.e. property that’s used as your second home, your recreational property, or anything that’s not used primarily for investment or business). Those properties are generally outside of the strike zone and cannot be used in a 1031 exchange transaction.

Take the First Step in Your 1031 Exchange Journey

If you’re ready to take the first step in your 1031 exchange journey and defer your capital gains taxes when selling investment real estate, contact the team at CPEC1031, LLC today. Our qualified intermediaries can help you through your entire 1031 exchange journey – from beginning to end. We have decades of experience in the 1031 exchange industry and can help make sure you are following all the 1031 exchange rules and guidelines so that you can ultimately defer your capital gains taxes. Reach our team today at our 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video - Questions to Ask When Vetting a Qualified Intermediary

When conducting a 1031 exchange, it’s important to properly vet your qualified intermediary. Here are some questions to ask about your qualified intermediary before you make the decision to hire them for your like-kind exchange:

• Do they have a professional license? Are they an attorney licensed to practice law? Are they a CPA who’s gone through that rigorous examination?

• Do they have an A+ rating with the BBB? Do they have a lot of good reviews on Google?

• Have they been in business for decades or are they new to the industry?

• Are they actually authorized to do business in your state?

• Do they use separate, segregated bank accounts or do they put all their client monies into one bucket?

CPEC1031, LLC – Your 1031 Exchange Resource

CPEC1031, LLC is your resource for all things related to 1031 exchanges. For the past several decades, we have been helping taxpayers just like you defer taxes under section 1031 of the Internal Revenue Code. We can help you keep your money working in a continued investment. Contact us today to learn more about the 1031 exchange process, its benefits, and how we can help facilitate your next like-kind exchange. Our team operates out of our primary office in downtown Minneapolis but we work with clients across 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video - Don’t Cash Out: A History Lesson for 1031 Exchanges

Let’s do a little 1031 exchange history lesson.

If you go back in the tax code, we had a hodgepodge of laws with very little rhyme or reason. Congress would pass a law and stick it in the book. In 1921, the first iteration of the 1031 exchange was put in the code. However, it wasn’t called a “1031 exchange” yet because the Internal Revenue Code as we know it now didn’t even exist.

That first version allowed for the deferral of tax when there was a swap (of real estate or other assets). The contemplated modality was that you trade someone your farm and the other party trades you their farm in a simple swap. The thinking was that people in that situation shouldn’t be penalized with taxes if they’re just continuing their investment in a different but equivalent property. That rationale continues to this day in the realm of 1031 exchanges – don’t cash out!

Reinvest Your Sales Proceeds and Defer Your Capital Gains Taxes in a Like-Kind Exchange

With a 1031 exchange, you can defer your capital gains taxes by reinvesting the net proceeds from the sale of investment real estate. The benefits of doing so are numerous. You get to keep your money compounding and building over time in a continued investment rather than simply paying a big tax bill. Like-kind exchanges can be conducted by any US taxpayer – provided your property meets certain benchmarks. Contact the intermediaries at CPEC1031, LLC today to get help with your next 1031 exchange of investment real estate.

• 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – Section 1033 Timelines

Section 1033 is very similar to section 1031 of the Internal Revenue Code. However, section 1033 provides for an exchange period that’s completely different than that of section 1031. Under 1033 you can suffer a loss (such as from theft, storm destruction, or from government seizure or condemnation). What is the replacement period in the context of a 1033? The date of your loss (under destruction or theft) would start the period under that scenario. But in the context of seizure, the process can actually start when there’s the first eminent threat.

So your replacement period can actually commence even before you’ve received any consideration. It can begin when the threat of seizure occurs.

What about the end of the period? The 1033 period typically ends two years after the close of the year in which you received the first payment from which you realized income. That being said, in the case of real estate that is held for investment or business purposes, your period can be extended to three years. 

Like-Kind Exchange Company – CPEC1031, LLC

CPEC1031, LLC is a like-kind exchange company working to facilitate 1031 exchanges and 1033 exchanges in Minnesota and across the country. With over two decades of experience, we are well-suited to help you through the process of deferring taxes through a 1031 exchange of real estate. We can help prepare documentation, safeguard your funds, and answer all of your questions about the process. We’ve helped countless taxpayers with their 1031 exchanges. Let us help you too. Contact us today at our Minneapolis office and get started with your next 1031 exchange of real estate!

• 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – How to Manage Your 45-Day Deadline in a 1031 Exchange

When you’re up against the gun at the end of your 1031 exchange identification period and you’re not finding any suitable replacement property, what are some alternatives to consider?

DST products (offered by wealth managers) are one of the better alternatives to consider in this situation. DSTs are pre-packaged securities. They don’t require a survey, a lease examination, or need to clear any other hurdles because the properties are already vetted.

Another solution would be to work with a commercial real estate agent who can show you triple net leased single-tenant properties.

Find a Qualified Intermediary for Your Next 1031 Exchange

Find a qualified intermediary for your next 1031 exchange at CPEC1031, LLC. With decades of experience, we have the skills and resources necessary to guide you through the like-kind exchange process from beginning to end. Our intermediaries work tirelessly to ensure you are fully educated about the process and that you don’t miss any of your 1031 exchange deadlines. Reach out to us today to learn more about how we can help and how a 1031 exchange can help you keep your money working for you in a continued investment.

• 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved