Sign Up for our Free Webinar: Estate Planning Benefits of 1031 Exchanges

Join Jeff Peterson of CPEC1031, Brian Weisberg of Siegel Brill and Corey Edmunds of Boeckermann Grafstrom & Mayer for a discussion about how to incorporate 1031 exchanges into the estate planning process.

Details:

• What: Estate Planning Benefits of 1031 Exchanges

• When: March 18 at 11:00 AM CST

• Where: Online - click on the link below to learn more and RSVP! 

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Event Speakers:

Jeff Peterson

Jeffrey Peterson is the president of CPEC1031, LLC. He received both his B.A. and his J.D. from the University of Minnesota, and is a member of the Minnesota State Bar Association and the Tax Section of the American Bar Association. He is also an adjunct tax law professor at Mitchell Hamline College of Law and instructor for Kaplan Real Estate Education. 

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Thomas Rishovd - Moderator

Tom has been in the financial services industry for 20+ years. In this time, he developed a practice that focuses on developing solutions for families, individuals and business owners. He built his practice on a foundation of high integrity, prudent guidance and thorough attention to client needs.

Tom received a B.B.A. in Economics and Business Administration from the University of North Dakota. He continue to expand his knowledge and investment management capabilities through an ongoing series of courses in Asset Management, Analysis, Performance Management, Estate Planning Strategies and other related areas. He is a CFP® - CERTIFIED FINANCIAL PLANNER™ practitioner.

Tom is married to Maggie, they have four children (19,18,15,11). He is a Certified Flight Instructor and a licensed commercial pilot. In his free time, he enjoys flying, boating, snowmobiling and spending time with his family. 

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Corey Edmunds

Corey W. Edmunds is a Principal of Boeckermann Grafstrom & Mayer. With 30 years of public accounting experience, Corey specializes in providing income tax and accounting services to closely-held businesses and their owners. He serves a wide range of clients, including contractors and construction; franchise operations; manufacturers and distributors; professional services firms; real estate developers; restaurants and hospitality businesses; and transportation and logistics companies.

Leveraging his years of experience serving a diverse range of industries, Corey is skilled in handling complex tax situations. He provides a range of business and executive tax planning and compliance services, including consolidated group tax filings; IRS and state tax problem resolution; multi-state taxation; and international taxation. Corey also assists clients with business advisory and strategic planning services, including entity selection; real estate acquisitions and dispositions; corporate restructuring and succession planning; and succession planning and owner exit strategies. Continually bringing fresh insight and solutions to address clients’ needs and challenges, Corey thrives on helping clients work-through difficult and complex tax situations. 

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Brian Weisberg

Many of Brian's clients are owners of closely held businesses. In addition to providing general legal and business advice on day to day issues, Brian has developed specific skills to help closely held business owners with the following: resolving complicated succession and wealth transfer planning, adopting internal governance procedures and compensation plans that reduce disputes among the owners, and designing successful exit strategies when some or all of the owners elect to leave the business. Many of Brian's clients are multi-generational, family-owned companies, oftentimes including active and inactive owners. He is aware and respectful of the family dynamic when imparting business or individual advice.

Brian brings a unique perspective to being a family business lawyer. He is a third- generation lawyer; his grandfather and father both practiced law. In some instances all three generations of lawyers in Brian's family have represented the same business client, providing guidance through multiple successions and transitions.

Drawing on his tax and business law background, Brian is able to structure solutions for his clients that achieve their objective in a practical and tax-efficient manner, helping clients avoid wasted time and money. Brian is able to get to the heart of the problem quickly and to provide straight talk on business and personal decisions when the situation requires it.

Working closely with his clients' other advisors, Brian can also leverage the Real Estate, Closely Held Businesses and Litigation and Dispute Resolution practices at Siegel Brill where he has practiced since 1989.

The 3 Ts of Property Ownership

Any commercial property owner will tell you that owning property is a lot of work. In this article, we are going to dive into the 3 Ts of property ownership and discuss why 1031 exchanging into less management intensive properties makes sense.

The 3 Tenets of Property Ownership

1. Tenants – Hard to deal with, unreasonable, unrealistic and unreliable (don’t pay on time, cause problems, demanding, etc.)

2. Trash – Costs of ownership with taxes, sanitation, insurance go up every year

3. Toilets – plumbing and deferred maintenance in old buildings is costly, ongoing and aggravating

Consider DST Management Free Investments

If these 3 Ts are causing you undue stress, consider the management free nature of a DST investment. What are the advantages of DST management free investments? Here are a few benefits:

• Minimal Investment Requirement

• Larger Growth Potential

• Diversification

• Management Free Ownership

• A Clearly Defined Exit Strategy

If you have any questions about the benefits of DST ownership or 1031 exchanges in general, don’t hesitate to reach out to CPEC1031! Our qualified intermediaries have decades of experience facilitating like-kind exchanges of all shapes and sizes. You can find us at our primary office located in downtown Minneapolis, or at one of our satellite offices 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

What Exactly Does a 1031 Intermediary do After Receiving the Sales & Purchase Agreements?

What does the qualified intermediary do after they receive the sales and purchase agreements and title commitment from the closing agent? That's the topic we'll explore in this article.

Tailor-Made Documents

The qualified intermediary tailor-makes 1031 documents specific to your transaction.

In order to do that the qualified intermediary needs to ascertain exactly how you hold title to the old relinquished property, the legal description of the property, and who the other parties to the sales contract are that need to be given certain notices in writing about your transaction and your assignment to the qualified intermediary.

Other Parties

So when a qualified intermediary gets started at the very beginning of the transaction they have to get their arms around all of these various details in order to tailor the documents for your 1031 transaction. They also need to be able to interface with the other parties to the transaction, including:

• Title closers

• Attorneys

• Escrow agents

We need to interact with these and various other people in order to make sure that your closing goes smoothly and is not a dramatic and disruptive event.

Qualified Intermediaries you can Trust

It's important to find a skilled intermediary to work with on your 1031 exchange transaction. Contact CPEC1031, LLC today for assistance with your like-kind exchange. With two decades of experience, we are well-equipped to handle all the aspects of your 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

The Specific Requirements of a 1031 Exchange

There are a lot of rules and requirements that govern the exchange of like-kind property. In this article, we are going to explain the most important requirements for any successful 1031 exchange.

You Need to Hold Your Property for the Requisite Use

In order to qualify for a 1031 exchange, you need to be of the right mindset when it comes to holding your property. In a nutshell, you need to hold your property for investment or business use. Personal use property is not allowed in a 1031 exchange.

Your Property Needs to be Like-Kind

All of your property involved in the 1031 exchange needs to be of “like-kind” to one another. What does “like-kind” mean? When you’re dealing with real estate, “like-kind” is defined very broadly, in that most real estate is considered like-kind to most other real estate. You can exchange an apartment building for a hotel, or for a piece of farmland.

You Need to Complete Your Exchange Within 180 Days

The IRS has very strict timelines for completing a 1031 exchange. You have a total of 180 days to finish your exchange. That clock starts ticking after the sale of your relinquished property. If you fail to exchange into your replacement property before midnight on the 180th day, your exchange will fail. In addition, you have to identify in writing your replacement property during the first 45 days of that 180 day period.

You Need to Go Up in your Value, Equity, and Debt

You also need to make sure that you are exchanging into a replacement property that has more value, equity, and debt than your relinquished property.

These rules and requirements can be difficult to keep track of, If you have any questions about whether or not you’re abiding by all the necessary 1031 requirements, contact CPEC1031, LLC to discuss your 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

How 1031 Exchanges are Different in 2021

1031 exchanges have changed over the years due to various laws, cases, and private letter rulings. In this article, we are going to discuss how 1031 exchanges are different in 2021 and how to effectively manage your exchanges in the future.

Remember the Tax Cuts & Jobs Act

The Tax Cuts & Jobs Act that went into effect a few years ago significantly changed the 1031 exchange landscape. Thankfully, the Act preserved like-kind exchanges of property, but it also axed exchanges of personal property. That means personal property items that were once allowed under section 1031 (such as business property, artwork, aircraft, and the like) are no longer eligible for 1031 treatment.

1031 Tips for the Future

1031 exchanges are ever-evolving, but with enough planning, you can utilize them to your benefit. The first thing to remember for future 1031 exchanges is that you’re not going to be able to exchange personal property. Keep it confined to real property. Next, remember to always work with a qualified intermediary on your exchange. Intermediaries understand the ins and outs of 1031 exchanges better than anyone, so they are well-equipped to help you navigate the rough waters of the 1031 exchange process.

We can Help

The qualified intermediaries at CPEC1031, LLC have been facilitating like-kind exchanges for more than twenty years. Our qualified intermediaries work with investors large and small to help them defer taxes when selling real property. We can help you understand the process and ensure that you feel comfortable throughout your exchange. Reach out to us today to learn more about the process and how we can help. Our main office is located in downtown Minneapolis but we work with clients across the state of Minnesota and the entire 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.