Tips for Conducting 1031 Exchanges in 2020

The 1031 exchange is an ever-evolving tool. It’s important to keep up with those changes to ensure you are doing everything correctly. In this article, we are going to offer up some tips for conducting 1031 exchanges in the year 2020.

1031 Exchange Changes in 2020

1031 exchanges went through a pretty big overhaul a few years ago, with the Tax Cuts and Jobs Act, which removed exchanges of personal property entirely. Thankfully, that Act kept real estate exchanges intact and there are currently no big changes to 1031 exchange policy set to take effect in 2020.

Should I Wait Until 2020 to Start an Exchange?

If you haven’t yet started your exchange, you don’t need to wait until 2020 to begin. You can start your exchange at any time during the year. That being said, there are certain considerations to keep in mind when your exchange straddles two different years. You should always consult with your CPA or accountant to see what they recommend.

Minnesota 1031 Exchange Company

If you’re looking for help with your 1031 exchange or real estate, you’ve come to the right place! The qualified intermediaries at CPEC1031 have twenty years of experience working on 1031 exchanges of all types. We can help you through every step of the 1031 process, making sure that you are fully prepared when it comes time to close. Contact our 1031 exchange team today at our downtown Minneapolis office to learn more about our process and how we can help you save money in 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

What Our Clients Say About Our 1031 Exchange Services

We can talk about our services all day long, but nothing is more powerful than the words of our clients. Here are a few clients we’ve worked with who had great things to say about our services.

Ryan O’Neill

It has been such a pleasure for our team, The Minnesota Real Estate Team with RE/MAX Advantage Plus, to work with Jeff Peterson and CPEC1031. Each month we have provided real estate investing seminars. With these seminars, we need to have a trusted and "go to" 1031 Exchange company and expert we can refer clients to. Jeff and his team are extremely knowledgeable, hard working, and truly committed to the best interest of each of our clients. Thank you so very much for all that you do for our team and our clients, Jeff. It has been a privilege for us to work with you and your entire team. Cheers! 

Randy Hoese

As a 20+ year real estate agent & broker in the Twin Cities apartment market, I’ve been involved in many 1031 Exchanges. Over the years, I’ve also worked with and referred different exchange companies to my clients.  Jeff Peterson with CPEC1031is recognized as the expert in this area of a real estate sale & he’s my go to guy for anything related to real estate exchanges. He is very experienced, knowledgeable and easily accessible for myself and my clients when we have questions.  I certainly recommend talking to Jeff when you’re considering selling an investment property.  1031 Exchanges can sometimes be complicated so don’t risk losing any of your hard earned money. Hire the best & you’ll be glad you did.

Nancy McKenzie

It is without hesitation or reservation and with great confidence that I offer my highest possible recommendation of Jeff Peterson and the services received from CPEC.  5 stars, A+, Outstanding – all fair characterizations of the professional services and attention delivered by Jeff Peterson. 

As the trustee of a supplemental needs trust, I became involved in an interesting yet somewhat complicated series of real estate transactions.  Some other firms had failed to provide appropriate guidance yielding a convoluted mess.  Then, I was introduced to Jeff.  He has all of the answers and knew where all of the potential issues were.  Jeff helped guide me through the intricacies of a 1031 exchange, various IRS forms, and applicable case law.  Jeff’s technical competence and moral compass are above reproach.  His nickname as “Professor 1031” is well deserved.

It was a pleasure to have the service of a real expert and true professional. 

CPEC1031

At CPEC1031, we have over two decades of experience working with clients on their 1031 exchanges. Our qualified intermediaries can help you through each and every stage of your commercial transaction. Contact one of our qualified intermediaries today to learn more about the 1031 exchange process and how we can help you save money on your next real estate sale. You can find us at our main office in downtown Minneapolis, or at one of our satellite offices 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The 1031 / 1033 Exchange Combo

We are working with a client that would like to 1031 exchange out of a property that recently went through the Eminent Domain process for a road-widening project in front of the property. Ideally, they want to combine funds from both transactions into one exchange property. Is this possible?

The property is owned as an LLC. How does that complicate the ability to do individual exchanges? Would they have to convert to a TIC in order to go their separate ways? If so, how long would the process take? 

The short answer is yes. This is possible by doing a 1031 / 1033 exchange combo. However, the “value” of the Replacement Property may need to be high enough to cover both a 1033 and 1031.

1031 Exchange Company

Looking for assistance with your 1031 exchange? You’ve come to the right place! At CPEC1031, our qualified intermediaries have over two decades of experience facilitating transactions under section 1031 of the Internal Revenue Code. We can help you through the entire process and ensure that you are well-prepared for the closing table. Contact us today at our downtown 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

The Benefits of Doing a 1031 Exchange During a Recession

With a potential recession looming on the horizon, many real estate investors are weighing their options. While selling and sitting on your property are both viable options, a 1031 exchange is another option that many investors don’t consider. In this article, we’re going to explain the benefits of conducting a 1031 exchange in a recession.

Defer Your Taxes

The biggest benefit of a 1031 exchange (in a recession or an economic boom) is that it allows you to defer your capital gains taxes when selling real estate. These taxes can add up to a hefty bill, depending on your specific property – so much so that they often deter owners from selling at all. Well, a 1031 exchange incentivizes you to sell your property by removing this tax liability.

Replacement Property Opportunities

A recession may bring the total value of your property down, which can make investors hesitant to sell. However, that decreased sales price would also apply to any potential replacement property – meaning a recession may be a good time to purchase new replacement property at a lower price. A 1031 exchange would allow you to do that while simultaneously deferring your capital gains taxes.

Save Money in Capital Gains Taxes

Looking to save money in capital gains taxes when selling real estate? Then a 1031 exchange might be right for you! By reinvesting your sales proceeds into a replacement property, a 1031 exchange allows you to defer your capital gains taxes on the sale of real estate. The qualified intermediaries at CPEC1031 have over twenty years of experience facilitating exchanges of all shapes and sizes. Let us help you through the ins and outs of 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

Maximizing The Impact of Your 1031 Exchange

Without the right resources at hand, a 1031 exchange can go horribly wrong. In this article, we are going to discuss a few tips for maximizing the impact of your 1031 exchange.

Work with a Qualified Intermediary

Working with a skilled and experienced qualified intermediary on your exchange is the best way to maximize its impact and ensure its success. An intermediary is a pro on all things related to section 1031 and will be able to advise you on the right steps to take as you progress.

Line up Your Replacement Property

Once you start your 1031 exchange, you only have 180 days to complete it. And you only have 45 days to identify your replacement property. This can lead to a huge time crunch for taxpayers who sell their relinquished property before lining up replacement property. While you don’t need to have your replacement property completely locked down before you begin the process, it’s a good practice to at least do some preliminary research so you are well prepared.

Like-Kind Exchanges Under Section 1031 of the IRC

1031 exchanges apply to every United States taxpayer who owns qualifying property. See how a 1031 exchange can benefit you by contacting a qualified intermediary at CPEC1031. Reach out to our 1031 exchange professionals today to learn more about the process and how we can help you save money in capital gains taxes. Our primary office is located in the heart of downtown Minneapolis. You can also find us at one of our satellite offices around 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.

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved