3 Key Benefits of a 1031 Exchange

Taxpayers conduct like-kind exchanges for various reasons, depending on their specific situations. Indeed, there are many benefits provided by section 1031 of the Internal Revenue Code, but many people are unaware of these benefits. In this article, we discuss three key benefits of doing a 1031 exchange of real estate.

Tax Deferral

A 1031 exchange allows you to keep your money working for you in a continuation of your investment. If you dispose of a property in a traditional, straight-forward sale, you will need to recognize and pay capital gains taxes on the net proceeds from that sale. A 1031 exchange offers you a tax-advantageous alternative in which you can defer those gains by reinvesting your proceeds into a replacement property of equal or greater value.

Growth

By leveraging the proceeds from your relinquished property sale, you can accelerate the growth of your wealth. By doing so, a 1031 exchange can help compound your wealth over time as you (potentially) continue to exchange into bigger and better properties.

Flexibility

1031 exchanges give you the flexibility to upgrade, diversify, or reposition your assets. You can exchange into and out of different geographic regions and industries. For example, you can sell a retail space in Edina, Minnesota and exchange into an apartment complex in Houston, Texas.

Tax-Deferred Exchange Company

CPEC1031, LLC helps taxpayers with tax-deferred exchanges under section 1031 of the Internal Revenue Code. We have been helping people with their 1031 exchanges for over twenty years and we can help you too! Contact us today to learn more about the like-kind exchange process and see if your property qualifies for 1031 exchange treatment.

• 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

How to Find a Qualified Intermediary for Your 1031 Exchange

Many taxpayers want to get into the 1031 exchange game, but don’t know where to find a qualified intermediary to facilitate their transaction. In this article, we are going to offer up a few tips for finding a qualified intermediary for your 1031 exchange.

Ask Your Network

When you’re looking for a referral for anything, one of the best places to start is your existing network. Reach out to your real estate broker, your financial planner, your accountant, or your attorney and see if they can recommend an intermediary for your exchange. These professionals likely interface with qualified intermediaries during the course of their business and they can likely connect you with a trusted intermediary.

Do Some Research

You should also do your own research, even if you’ve been given a referral. Start with a Google search and find an intermediary with great reviews. Check out their web presence and see if they are a well regarded in the industry.

1031 Exchange Company – CPEC1031, LLC

CPEC1031, LLC is your go-to 1031 exchange company, ready to help answer all of your 1031 exchange related questions. We have more than two decades of experience in the like-kind exchange industry and are well-suited to guide you through the 1031 exchange process and help you avoid any potential pitfalls. We are here to help you defer capital gains taxes when you sell qualifying real estate. Contact us today at our downtown Minneapolis office to learn more about our 1031 exchange services and see how we can help you through the specifics of your next real estate 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

2 Tips to Set Your 1031 Exchange Up For Success

In a 1031 exchange, there are many potential traps that can lead to failure. In this article, we are going to lay out a couple tips to set your 1031 exchange up for success.

Give Yourself Plenty of Runway

One of the biggest potential traps in a 1031 exchange is time. Like-kind exchanges have strict time tables that you have to follow if you want your exchange to succeed. You have only 180 days total from the start of your exchange to the finish. On top of that, you only have the first 45 of those days to identify your replacement property. If you go over on either of those deadlines, you put your exchange in jeopardy. It’s important to give yourself plenty of prep time before starting your exchange to make sure you have all your ducks in a row.

Work with a Skilled Intermediary

It’s also important to work with a qualified intermediary that has experience facilitating 1031 exchanges like yours. There are many intricacies in the 1031 exchange process so it’s important to partner with an intermediary who understands the process inside and out.

Find a Qualified Intermediary Near You

Find a qualified intermediary near you by contacting CPEC1031, LLC today. We have over twenty years of experience facilitating exchanges under section 1031 of the Internal Revenue Code for taxpayers across the United States. If you are looking for help deferring capital gains taxes when selling investment real estate, we can help. Contact us today to learn a bit more about the full extent of services we provide and see how we can assist you through the many details of 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