Video – 1031 Exchanges of Vacant Land

Many taxpayers own raw or vacant land that they are holding for appreciation. Perhaps they think that land is in the pathway for development 5-10 years out and that it will be worth a lot of money some day.

You can do a 1031 exchange on property that is costing you money to own (due to the property taxes and insurance costs), but it’s important to ask yourself how you own the property. Did you inherit it in a trust? Did you acquire it as a part of an entity or individually?

There are a lot of questions to answer before you get started. Generally speaking, individual owners who are tenants-in-common and have owned the property for investment or business purposes can each do 1031 exchanges on their separate sales of their fractional interest in the real estate.

A Qualified Intermediary Can Help You with Your 1031 Exchange

If you’re interested in learning more about the tax deferral benefits of a 1031 exchange of your investment real estate, a qualified intermediary can help. A qualified intermediary is a neutral third party that can insulate you from receiving any taxable “boot” during the exchange process. They can also help prepare documentation, coordinate with your tax advisor, and answer any questions you might have throughout the 1031 exchange process. Contact the intermediaries at CPEC1031, LLC today to learn more about the exchange process and get the ball rolling with 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – Do I Need a Qualified Intermediary for a Simultaneous Exchange?

If two parties are doing a simultaneous 1031 exchange, you don’t technically need to use a qualified intermediary. However, it’s often still a prudent practice to use a qualified intermediary in a simultaneous exchange because that’s how the IRS has become accustomed to seeing these exchanges reported. Additionally, the qualified intermediary structure provides a certain formality and uniformity to the process.

This is perhaps even more important when there are differences between the two parcels being sold. If the values being swapped are not identical, that means one party is going to need to be made whole by adding cash to the transfer. Another factor is that if one property has debt on it and the other doesn’t, that debt has to be extinguished in order to convey marketable title. Using a qualified intermediary helps soften the rough edges of the transaction and provides a uniform way of dealing with any discrepancies in value, equity, and debt.

Defer the Tax and Maximize Your Gain with a 1031 Exchange

A like-kind exchange under section 1031 of the Internal Revenue Code allows you to defer your capital gains taxes and maximize your gain when selling qualifying real property. At CPEC1031, LLC we have decades of experience in the 1031 exchange industry and have performed countless exchanges of all shapes and sizes, from forward exchanges, to reverse exchanges, to build-to-suit construction exchanges. Reach out to our team of 1031 exchange professionals today at our Twin Cities office to get started with your next 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Video – The 1031 Exchange 45-Day Identification Period Rules and Exceptions

In a 1031 exchange, can you change your identification of replacement property after the passing of the 45th day of the identification period? The general answer is no. You compute the day of closing on your relinquished property as day zero and count 45 days thereafter – that’s your identification period. By midnight of the 45th day you need to have made your identification of replacement property.

The only exception to that general rule is if you’re impacted by a federally declared disaster, in which case you may be eligible for an extension under Rev. Proc. 2018-58. You need to work with your tax advisor to determine if you are actually eligible for this special exemption because generally the IRS has created these guidelines to limit the number of people completing 1031 exchanges.

Find A Qualified Intermediary For Your Next Like-Kind Exchange

If you are searching for a qualified intermediary to help with your next like-mind exchange, look no further! The intermediaries at CPEC1031, LLC have more than twenty years of experience in the 1031 exchange industry. We can help you through every aspect of the 1031 exchange process, from document preparation, to replacement property selection, to closing and reporting. Reach out to us today to learn more about the 1031 exchange services we provide and see how we can help you through the ins and outs of 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 – The 1031 Exchange Timeline, Explained

The date of the closing of your relinquished property is day zero for computing both the 45 day identification period deadline and the 180 day exchange period deadline. You have to submit your property identification by midnight of the 45th day, and you must complete the purchase of your replacement properties by the 180th day.

1031 Exchange Tips and Resources

If you’re looking for 1031 exchange tips and resources, you’ve come to the right place! CPEC1031, LLC is your one-stop-shop for all things 1031 exchange. For more than two decades, we have been providing qualified intermediary services to clients throughout the state of Minnesota and across the country. We have extensive experience facilitating forward exchanges, reverse exchanges, and built-to-suit exchanges. Let us put our experience to work on your next like-kind exchange of real estate. With our help, you can defer 100% of your capital gains taxes when selling qualifying real estate under section 1031 of the Internal Revenue Code.

• 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 – The Importance of Involving a CPA When Dealing with 1031 Exchanges Involving LLCs

When conducting a 1031 exchange that involves an LLC, it’s important to involve your CPA or accountant. You need to look at the operating agreement, contribution agreement, and tax returns for the previous years and talk to your accountant to diagnose if this is really a disregarded entity. On top of that, you need to determine whether you’re in a community property state (like Wisconsin, Texas, or California), or if you’re in an equitable property state (like Minnesota, Iowa, or the Dakotas). In community property states, a husband and wife filing a joint tax return can be construed as a single member, even though they’re two separate human beings. An LLC owned by two married people filing a joint tax return in a community property state will be treated (generally) as if it was a single member disregarded sole proprietorship.

Start The Exchange & Defer Your Capital Gains Tax Burden

Start your 1031 exchange of real estate and defer your capital gains tax burden when selling real estate held for investment or business purposes. CPEC1031, LLC works with taxpayers conducting all kinds of 1031 exchanges – from forward exchanges, to reverse exchanges, to construction exchanges. Our intermediaries have decades of experience working with clients from across the United States on their 1031 exchanges. Let us help you through the details of your next like-kind exchange! Contact us at our primary 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved