Do I Have Time to Do a 1031 Exchange?

Many taxpayers who want to do a 1031 exchange wonder if they have enough time or if it’s too late. In this article, we will talk a little bit about the various time constraints of a 1031 exchange so you can determine whether or not you have the time to conduct a 1031 exchange.

Calculating Your Timeline

In a typical 1031 exchange you have 180 days total from the start of your exchange to completion. The first 45 of those days are your identification period. There are some rare exceptions to these rules, but for the vast majority of exchanges you need to stick to these timeframes.

Calculate your 1031 exchange deadlines with our online calculator.

Last Minute Deals

Generally, the earlier you begin the 1031 exchange process the better. If you wait until the last minute to set up the exchange, you may not have enough time. If you are even considering a 1031 exchange, contact a qualified intermediary to discuss your options.

1031 Tax Deferral

If you are looking to sell investment real estate, why not avoid a hefty capital gains tax bill by conducting a 1031 exchange of the property? Like-kind exchanges are a legitimate way of deferring your taxes on the sale of real property and making your money work for you in a future investment. At CPEC1031 our qualified intermediaries have two decades of experience working with taxpayers all over the country on their 1031 exchanges of real property. Contact our team today at our downtown Minneapolis office to discuss the details of your exchange and how we can help you save money!

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Can You 1031 Exchange Property in Two Different Industries?

1031 exchanges are very versatile and allow you to exchange out of and into different market segments. In this article, we are going to talk about how you can 1031 exchange from one industry into another.

Like-Kind

When it comes to 1031 exchanges, one of the most important rules you need to follow is that all property involved needs to be like-kind. Thankfully, the term “like-kind” in the realm of real estate is very broadly construed. Nearly all qualified real estate is considered like-kind to all other qualified real property. That means you can do a like-kind exchange from a relinquished property in one industry into a replacement property in a completely different industry – so long as you meet all the other requirements.

An Example

Let’s say you own an apartment complex and you are interested in selling that property and getting into another market segment. You could sell your apartment complex in a 1031 transaction, and roll your sales proceeds into a hotel (your replacement property). This showcases the versatility of the 1031 exchange.

1031 Exchanges in St. Paul, MN

1031 exchanges offer a fantastic way to defer your capital gains tax when you sell real estate. Instead of writing a check to the government, you can move your hard-earned money into a continued investment and keep your money working for you over time. At CPEC1031our qualified intermediaries have over twenty years of experience facilitating 1031 exchanges of all shapes and sizes. Contact us today to set up a time to chat about your 1031 exchange and see how we can help you save money on your next real estate transaction.

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Now is the Perfect Time to Learn About 1031 Exchanges

The real estate market is hot, and it’s a great time to sell real property, but that can also mean more taxes. In this article, we’re going to talk about why now is the perfect time to learn more about section 1031 of the Internal Revenue Code.

Hot Seller’s Market

The real estate market is very hot right now, which is a great thing for sellers whose properties have increased in value. However, there are two sides to every coin. If your property has increased in value and you sell it for a high price, your capital gains taxes on the sale of that property are also going to be high. That means one thing – a bigger tax bill.

Avoiding a Tax Bill

If you want to avoid a big tax bill, as I imagine most investors do, a 1031 exchange can help! Using a like-kind exchange, you can defer your capital gains taxes on the sale of real estate. That being said, you are required to meet certain requirements outlined by the IRS in order for your exchange to succeed. You need to complete your exchange within 180 days, your property needs to qualify for 1031 treatment, and you have to exchange into like-kind property.

Like-Kind Intermediaries

At CPEC1031, your 1031 exchange is our business. With more than twenty years of experience, our qualified intermediaries have the skills and experience needed to guide you through the avenues of the like-kind exchange process – from the sale of your relinquished property, to the purchase of your replacement property. Contact us at our office in downtown Minneapolis to discuss the details of your exchange and start the tax-deferral process today!

• 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Replacement Property Limitations

In a 1031 exchange, you need to identify property that you wish to exchange into. But there are certain limitations surrounding replacement properties in a 1031 exchange. In this article, we are going to discuss some of these limitations so you can make sure that you don’t run afoul of any requirements in your 1031 exchange.

Time Limitations

First, there are some time limitations that we need to discuss. You only have 180 days total to start and finish your 1031 exchange, and the first 45 of those days are set aside as your identification period. This is the time you have to identify in writing your replacement property or properties. These are strict deadlines.

Property Limitations

In addition to the time restraints, you are also limited by the number of properties you can exchange into. There are a few basic rules that govern these limitations:

• Three Property Rule. You are allowed to identify up to three replacement properties for your exchange.
• 200% Rule. You can identify any amount of replacement properties as long as the total market value of all properties is no more than 200% of the value of your relinquished property.

Twin Cities Real Estate Exchanges

If you are looking to sell real estate, but you don’t want to pay a hefty capital gains tax bill, a 1031 exchange may be the best option for you! Consulting with a qualified intermediary is the first step in any exchange. An experienced intermediary can help you with all the details of your like-kind exchange. Contact us today to discuss your 1031 exchange. Our primary office is located in downtown Minneapolis, but we facilitate exchanges throughout 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

1031 Exchanges for Beginners

Anyone can do a 1031 exchange and avail themselves of the associated benefits of tax deferral. But many taxpayers are intimidated by the 1031 exchange process and assume it’s too complicated. In actuality, 1031 exchanges can be accomplished by following a few simple rules. In this article, we are going to talk about a few things that beginners should understand about 1031 exchanges.

Qualified, Like-Kind Property

Not all property is eligible for 1031 exchange treatment. The new tax law completely excludes personal property from 1031 exchange treatment. Real property also comes with several restrictions. First of all, your property needs to be held for a qualified purpose (i.e. for investment or business purposes). Furthermore, all property in the exchange needs to be like-kind.

Time Periods

You also have various time periods to keep in the back of your mind during a 1031 exchange. Your total time frame for completing the exchange is 180 days. The first 45 of those days is your identification period for identifying in writing your replacement property.

Qualified Intermediary

A qualified intermediary is a neutral third party whose job it is to facilitate your 1031 exchange. Working with an intermediary is the best way to ensure a successful exchange.

1031 Real Estate Exchange Services

At CPEC1031 our qualified intermediaries assist taxpayers in the exchange of real estate. A qualified intermediary can help you prepare all of the necessary 1031 exchange documents, advise you on your property, and answer all of your questions along the way. Reach out to us today to discuss the details of your real estate exchange. Our primary office is located in downtown Minneapolis but we work with clients all over Minnesota and across 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved