Do Your Relinquished & Replacement Properties Need to Be in the Same State?

Some of the most common questions people have about 1031 exchanges fall under the category of “where?” In other words, many people wonder if their 1031 exchange properties need to be located in the same geographic location (city, state, etc.) In this article, we are going to talk about whether or not your 1031 relinquished and replacement properties need to be in the same geographic area in a like-kind exchange transaction.

1031 Exchanges Are Nationwide

1031 exchanges work with like-kind property across the United States. When it comes to geography, the only thing you need to make sure of is that your properties are located in the United States. Foreign property does not qualify for 1031 treatment, but property in the US works, so long as it satisfies all the other requirements of a like-kind exchange.

Diversification Into Different Markets

Exchanging into and out of property in different cities and states is actually quite a common practice among investors. Some choose to move into different states for economic reasons (perhaps they want to move to a more tax-friendly state, or into a stronger real estate market), while others do so for more personal reasons (perhaps they’re retiring and moving to a different state).

Like-Kind Exchanges of Investment Real Estate

Find a qualified intermediary to help you through the 1031 exchange process by contacting CPEC1031, LLC. Our team is ready to help you through all the details surrounding your like-kind exchange of investment real estate. Whether you’re a seasoned investor or this is your first time dipping your toes into the 1031 exchange waters, we’re here to guide you through the process. Reach out to us today at our Minneapolis office and learn more about how you can benefit from a like-kind 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 

4 Essential Steps to a Successful Like-Kind Exchange

In this article, we are going to walk through four essential steps to conducting a successful like-kind exchange of real estate.

Include a 1031 Exchange Clause in Your Purchase Agreement

When you enter into a purchase agreement for a property, it’s a great idea to include a 1031 exchange clause stating that you intend to use the property in question in a 1031 exchange.

Contact a Qualified Intermediary

Early on in the process, reach out to a qualified intermediary (like CPEC1031, LLC) who can help you navigate the process successfully.

Sell Your Property While Avoiding Boot

To officially begin the 1031 exchange process, you need to sell your relinquished property. When you do this, it’s important to remember to avoid receiving any taxable “boot.” Most often, boot comes in the form of cash. Keep your hands off your cash proceeds during the process if you want to defer all of your capital gains taxes.

Remember Your Deadlines

Don’t forget that 1031 exchanges are governed by strict deadlines. Once you sell your relinquished property, you have just 180 days to complete your like-kind exchange. The first 45 days of that 180 day period are set aside as your “identification period” – the time during which you must identify in writing your replacement properties. If you miss any of these deadlines, your exchange will fail so it’s essential to be aware of these at all times.

1031 Exchange Help For Those Who Need It

At CPEC1031, LLC we offer 1031 exchange help for those who need it. No matter what your situation – whether you’re exchanging a large commercial property, a small rental property, or something in between – we are here to help! With over two decades of experience, of qualified intermediaries have the knowledge and the expertise needed to help you defer 100% of your capital gains tax burden. Let us help you through the 1031 exchange process from start to finish. Contact us at our downtown Minneapolis offices to learn more about our team and how we can help.

• 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

Why First-Time Investors Should Consider 1031 Exchanges

1031 exchanges are available to all US taxpayers – from seasoned veterans to first-time investors alike. In this article, we are going to explain why first-time investors should consider doing a 1031 exchange.

Grow Your Portfolio with a 1031 Exchange

A 1031 exchange is a tax-efficient vehicle for growing your portfolio. Here are some of the many benefits of conducting a 1031 exchange:

• Defer Your Taxes. 1031 exchanges are also known as tax-deferred exchanges because they allow you to defer your capital gains taxes on the sale of qualifying real estate.

• Leverage Your Equity. Trade up into a bigger and better replacement property and leverage your existing equity.

• Move Your Property. A 1031 exchange is a great way to move from one geographic area or industry segment into another. You can exchange into a property located in a more tax-advantageous state, or into a completely different sector of the market.

If you own investment property (whether it’s a rental property, a retail property, a large commercial property, or something else), consider a 1031 exchange as a way to defer taxes on the sale of your property and keep your money working for you in a continued investment.

Like-Kind Exchange Services

A 1031 exchange can help any owner of investment real estate defer their capital gains taxes on the sale of said real property. In order to defer your gains, however, you need to meet specific benchmarks throughout the process. That’s where a qualified intermediary can help. The intermediaries at CPEC1031, LLC have been assisting taxpayers for more than two decades with their 1031 exchanges. We work with clients across the United States on all types of exchanges – forward, reverse, and build-to-suit. Let us handle the details of 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

Why It’s Important to Find the Best Qualified Intermediary for Your 1031 Exchange

Finding the right qualified intermediary is essential in a 1031 exchange. It’s important to work with a qualified intermediary who has the skills needed to facilitate your particular transaction. However, many people don’t know why it’s important to work with the perfect intermediary. In this article, we are going to explain why it’s essential to work with a skilled intermediary on your next 1031 exchange of real estate.

The Importance of Working with a Skilled Intermediary

The first question many taxpayers ask is: “why is it important to work with a skilled intermediary on my 1031 exchange?” A qualified intermediary performs many important tasks throughout the course of a 1031 exchange. They can prepare all of your 1031-related documentation (and provide it to the relevant parties). They can answer your questions about the process and make sure you are never in the dark. They can insulate you from receiving any taxable proceeds when selling your relinquished property. These are just a few of the numerous reasons why it’s important to work with a skilled intermediary.

Qualified Intermediary Services

A 1031 exchange intermediary can help you through the process of deferring your capital gains taxes with a like-kind exchange. At CPEC1031, LLC we have been providing qualified intermediary services for more than two decades. Let us help you through the like-kind exchange process and ensure that you are able to defer 100% of your capital gains tax burden. Contact our team of 1031 exchange professionals today to learn more about the various benefits of conducting a 1031 exchange and see how we can help you through the process.

• 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

Can You Pocket Cash at Any Point During a 1031 Exchange?

Many taxpayers ask if they can take out any cash during the 1031 exchange process. In this article, we are going to talk about whether or not you can pocket cash at any point during a 1031 exchange.

Taxable Boot

If you pocket any cash at closing or during any point during your 1031 exchange, that would be considered taxable “boot.” You can do it if you wish, but you would have to pay capital gains taxes on that cash boot. Keep your hands off the net proceeds throughout the process to defer 100% of your gains.

Partial Exchange

In most situations, the goal of a 1031 exchange is 100% tax deferral. However, there are some instances in which a partial exchange might be acceptable or even preferable. For example, if you have prior loss carryovers, you may be able to offset a partial recognition of gains from taking some cash as taxable boot or from buying down in value on the replacement property purchase.

Find a 1031 Exchange Professional

Find a 1031 exchange professional near you and get your like-kind exchange off the ground today. At CPEC1031, LLC we have over two decades of experience facilitating 1031 exchanges of all shapes and sizes for clients in Minnesota and across the country. Our qualified intermediaries are here to help you through the entire exchange process, from start to finish. We can answer all your questions, help you find suitable replacement property, and make sure you are meeting all the requirements set out by section 1031 of the IRC. Contact us today 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved