Video – A Reverse 1031 Exchange is NOT a Retroactive Exchange

Sometimes people contact a qualified intermediary after they’ve already purchased a replacement property and they want to sell a relinquished property and do what they think is a reverse exchange. However, a reverse 1031 exchange is not a retroactive 1031 exchange. A reverse exchange under Rev. Proc. 237 is really a parking arrangement where you have the qualified intermediary form an LLC to become your surrogate purchaser of that replacement property and hold it for up to 180 days. During that holding period you sell your relinquished property. A reverse exchange is not a retroactive exchange in which you are allowed to acquire the replacement property on your own and then sell your relinquished property later.

Defer Capital Gains Taxes and Continue Your Investment with a 1031 Exchange

A 1031 exchange allows you to defer capital gains taxes while continuing your investment when selling qualifying property that’s held for investment or business use. CPEC1031, LLC can help facilitate your 1031 exchange transaction and make sure you meet all the necessary benchmarks during the process. Our qualified intermediaries understand the ins and outs of section 1031 of the Internal Revenue Code. We’ve been working in the like-kind exchange industry for over twenty years and can help you through the details 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Want to Close More Real Estate Deals? Educate Your Clients on 1031 Exchanges

If you're a real estate agent, broker, or investor looking to increase transactions and unlock hidden inventory, it’s time to leverage the power of the 1031 exchange. Many property owners hold off on selling simply because they’re worried about paying capital gains taxes. That hesitation results in fewer listings (and fewer opportunities) for you.

Introduce Your Clients to the Power of the 1031 Exchange

Here’s the solution: Introduce your clients to the benefits of a 1031 tax-deferred exchange, a legal strategy that allows them to:

• Defer capital gains taxes when selling qualifying property

• Reinvest in higher-performing or more strategic real estate assets

• Scale their real estate portfolio without taking a tax hit

By educating your clients on how to use a 1031 exchange to sell and reinvest smarter, you're not just helping them, you’re creating more opportunities for yourself.

More Listings. More Buyers. More Closed Deals.

Whether you're working with seasoned investors or first-time sellers, understanding and promoting 1031 exchange strategies can dramatically increase your deal flow. Don’t leave money on the table. Use this powerful tool to unlock off-market opportunities and drive real estate growth.

Minnesota 1031 Exchange Services

Looking for 1031 exchange services for your next like-kind exchange of real estate? You’ve come to the right place. At CPEC1031, LLC our qualified intermediaries are well equipped to work through every step of the 1031 exchange process. For more than twenty years we have been facilitating forward exchanges, reverse exchanges, build-to-suit exchanges, and more. Let us help you through the ins and outs of the 1031 exchange process and make sure you don’t miss a beat. You can set up a time to chat with one of our qualified intermediaries by contacting us at our Twin Cities office 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.

© 2025 Copyright Jeffrey R. Peterson All Rights Reserved

Avoid This Costly Misstep When Selling Investment Property

Are you planning to sell your investment property? Don't make the common mistake of selling first and thinking about taxes later. Many real estate investors are caught off guard by hefty capital gains taxes they weren't prepared for, which can significantly reduce profits from the sale.

The Smart Way to Sell: Use a 1031 Exchange

To avoid a substantial capital gains tax hit when selling investment property, consider utilizing a 1031 Exchange. This strategy allows you to defer paying taxes on the gains from your sale by reinvesting the proceeds into a "like-kind" property.

Here’s how it works:

• Sell your current investment property: Instead of taking the sales proceeds as cash, you reinvest them in another like-kind property.

• Defer taxes: By choosing this option, you don't pay capital gains taxes immediately, allowing you to keep more of your investment working for you.

• Grow your portfolio: A 1031 exchange is a powerful tool for real estate investors who want to expand their portfolio while deferring taxes.

Key Benefits of a 1031 Exchange for Real Estate Investors

1. Tax Deferral: The most significant advantage is the ability to defer taxes.

2. Increase Cash Flow: By keeping your funds reinvested, you can continue to earn returns without losing money to taxes.

3. Diversify Your Investments: A 1031 exchange allows you to sell one type of property and purchase a different one—whether that’s upgrading to a larger property or diversifying into another market.

4. Compounding Growth: The longer you defer taxes, the more you can grow your wealth through reinvestment.

Selling an investment property is a big decision, and it’s crucial to plan ahead so that taxes don’t erode your profits. A 1031 exchange is a powerful tool that can help you maximize your returns and keep your real estate investments growing.

Consider a 1031 Exchange

If you’re interested in deferring capital gains taxes when selling commercial or investment real estate, consider a 1031 exchange rather than a straightforward sale. Not only does a 1031 exchange allow you to save money on taxes, it also allows you to move into different real estate sectors and geographic areas. CPEC1031, LLC has been working with clients on 1031 exchanges of all types for more than twenty years. We can help you through the like-kind exchange process and guide you on the road to capital gains tax deferral.

• 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 Build Generational Wealth with a 1031 Exchange

One of the many benefits of a like-kind exchange under section 1031 of the Internal Revenue Code is that it allows you to compound your wealth over time. In this article, we are going to discuss how you can utilize the tax-saving benefits of a 1031 exchange to build generational wealth.

Build Generational Wealth Through Real Estate

Real estate is one of the most powerful tools for building long-term wealth. But capital gains taxes can take a significant bite out of your profits.

A 1031 exchange offers a smart solution to protect and grow your investments. With a 1031 exchange, you can:

• Defer capital gains taxes and keep more of your money working for you

• Reinvest in higher-performing properties without triggering a tax event

• Transfer real estate to heirs with a stepped-up basis to minimize future tax burdens

By using a 1031 exchange, you keep your real estate investments compounding and growing — helping you build true generational wealth.

Start Your Tax-Saving 1031 Exchange Today

Begin the process of deferring your capital gains taxes with a 1031 exchange today by contacting the team at CPEC1031, LLC. Our qualified intermediaries have decades of experience facilitating forward and reverse exchanges under section 1031 of the Internal Revenue Code. We can take care of all your 1031 exchange needs and ensure you are able to defer 100% of your capital gains tax burden when selling qualifying real property. Contact us at our Twin Cities office to learn more about the like-kind exchange process, how it can benefit you, 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

Identifying in the Alternative in a 1031 Exchange

If you’re afraid to identify your 1031 exchange replacement property because you don’t want your money to be tied up indefinitely, can you identify more than one replacement property even if you’re only planning to buy one of them?

The answer is yes. This is called “identifying in the alternative.”

How Does Identifying in the Alternative Work?

You identify property A or property B, but not both. For example, you could identify an apartment complex or a rental house, but not both of them.

If you are unsure which property will work out, identifying in the alternative can give you a backup plan without breaking the rules.

What are the rules?

1. 3 Property Rule

2. 200% Rule

3. 95% Rule

Remember – all identifications must still follow IRS limits under the tax code.

The flexibility offered by identifying in the alternative can keep your 1031 exchange funds from being tied up while you wait on a deal you might not want to close.

Consult with your qualified intermediary and your tax advisor before you finalize your property list because in a 1031 exchange, flexibility and compliance go hand in hand.

1031 Exchange Services in Minnesota

At CPEC1031, LLC we offer 1031 exchange services to taxpayers conducting like-kind exchanges of real estate throughout Minnesota and across the country. There are many guidelines you must abide by during your 1031 exchange in order to defer 100% of your capital gains tax burden. A qualified intermediary (like those at CPEC1031, LLC) can help ensure that you meet all of these requirements. Let our team of intermediaries work with you through the details of your next 1031 exchange of real estate. Contact us today at our Minneapolis office to get started.

• 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