Video – 1031 Exchanging Into Only Some of Your Identified Replacement Property

When you’re doing a 1031 exchange you have to identify your replacement property within 45 days and it has to be clearly and unambiguously defined. The identification must be signed by you in writing and sent in. But what happens if you don’t buy the entirety of what you identified? What if you identified four acres and you only ended up purchasing three of those four acres? Is that going to be satisfactory to the IRS for 1031 exchange purposes?

In an interesting treasury regulation for the treatment of 1031 exchanges, that same fact pattern came up. The taxpayer only ended up purchasing 75% of what they had originally identified. The IRS reasoned that the nature of what the taxpayer received was substantial the same and they allowed the 1031 exchange to proceed.

Consider the 1031 Exchange

The next time you’re selling a piece of investment real estate, consider a 1031 exchange that allows you to defer your capital gains tax burden. The catch is you have to reinvest your sales proceeds into a bigger replacement property. A 1031 exchange needs to be a continuation of your investment so pocketing any of the net proceeds is a big no-no. A qualified intermediary can help you through all these details and more. Contact the team at CPEC1031, LLC today to get started with your exchange. We have decades of experience in the 1031 exchange industry and have the knowledge to help you through 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

What Is a 1031 Exchange? A Simple Guide for First-Time Investors

The 1031 exchange is a powerful tax-deferral vehicle that savvy investors have been using for decades. Many taxpayers are interested in the benefits of 1031 exchange, but don’t know how the process works. This article will act as a simple guide to 1031 exchanges for first-time investors.

1031 Exchange Basics

Let’s start by defining the 1031 exchange. Section 1031 of the Internal Revenue Code is a provision that allows taxpayers to defer capital gains taxes when selling qualifying real estate. There are some important stipulations:

• All of the real estate involved in the transaction must be like-kind and held for investment or business purposes. That means you can’t use property held primarily for personal use.

• All of the proceeds from the sale of your relinquished property must be reinvested into a like-kind replacement property. A 1031 exchange must be a continuation of your investment so pocketing any cash proceeds is a no-no.

There are also several important deadlines you need to be aware of in a 1031 exchange:

• 180 Days. The 1031 exchange period is 180 days total. That timeline starts when you sell your relinquished property. You must complete your exchange within this timeframe in order to defer your taxes.

• 45 Days. During the first 45 days of that 180 day exchange period, you must identify in writing the replacement properties that you intend to exchange into.

Missing any of these deadlines will result in a failed exchange so it’s important to consult with a qualified intermediary who can make sure you are meeting all the requirements of section 1031.

Grow Your Wealth with a 1031 Exchange

There are many benefits of a 1031 exchange of investment or business real estate. Under section 1031 of the Internal Revenue Code, you are allowed to defer your capital gains tax burden on the sale of investment real estate so long as you reinvest your sales proceeds into a like-kind investment property. When you do everything correctly, you can defer your gains, and keep your money compounding and building over the long-run. This is a fantastic opportunity for tax-savvy investors and it can be utilized by any United States taxpayer. Contact CPEC1031, LLC today to learn more about the 1031 exchange 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

How the Internal Revenue Code Section 1031 Works in Plain English

1031 exchanges can get complicated quickly and many investors are intimidated by the process. That’s where we can help. In this article, we are going to outline how the 1031 exchange works in plain English.

The 1031 Exchange Process Explained

Let’s start with a brief explanation of the 1031 exchange process. There are several different types of 1031 exchanges, but the most common is known as the forward 1031 exchange. In this type of exchange, you begin by selling your relinquished property. Over the next 45 day period, you submit written identification of the replacement property you intend to use in the exchange. Then, within 180 days from the date of the sale of your relinquished property, you acquire your new replacement property.

In order to defer all of your capital gains taxes, you need to make sure that you reinvest 100% of your net proceeds from the sale of your relinquished property into your new replacement property. If you receive any cash during the process, it will be considered taxable “boot” and you will not be able to defer all of your capital gains taxes.

Defer Your Capital Gains Tax Burden with a 1031 Exchange

Defer your capital gains tax burden when selling investment or business real estate by engaging in a 1031 exchange transaction. Section 1031 of the Internal Revenue Code offers an excellent opportunity to defer your taxes and build your wealth over time in a continuation of your investment. The qualified intermediaries at CPEC1031, LLC have been facilitating 1031 exchanges of all shapes and sizes for decades. Let us help you through the details of your next like-kind exchange and start deferring your 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

Video – When to Do a 1031 Exchange of Real Estate

There are a number of factors that can influence your decision to conduct a 1031 exchange of real estate.

Some people are upset with government regulations and interference with how they operate their property. Some have problems with interest rates or insurance costs. Others have lots of deferred maintenance or just bad tenants that make the property difficult to own.

There are also opportunities in other geographic areas where you may want to invest for better appreciation and growth.

A 1031 Exchange is a Great Tax Planning Tool

If you’re looking to do a 1031 exchange, let’s talk about your options! 1031 exchanges can be a great tax planning tool for big and small investors alike. As long as your property is held for investment or business purposes, you can 1031 exchange it for like-kind real estate and continue your investment while deferring your capital gains tax burden. This is a fantastic vehicle for tax savings that can help you compound your wealth over time in a bigger and better investment property. Learn more about 1031 exchanges by reaching out to the team at CPEC1031, LLC. We can help you navigate the like-kind exchange process and ensure your 1031 exchange is 100% tax-deferred.

• 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

4 Essential Steps to a Successful 1031 Exchange

If you're considering selling an investment property in a 1031 exchange, understanding these four key steps can help you avoid pitfalls and maximize your investment potential.

1. Add a 1031 Exchange Clause to Your Contract

Before closing on the sale of your property, include a 1031 exchange cooperation clause in your contract. This notifies all parties involved that you intend to complete a 1031 exchange, and avoids any confusion during the exchange process.

2. Bring in a Qualified Intermediary

A Qualified Intermediary (QI) is a third party who facilitates the 1031 exchange process. They hold the funds from your sale and help ensure everything stays compliant with IRS regulations. Choosing an experienced QI is critical to avoiding costly mistakes.

3. Don’t Touch the Funds

This is one of the most important rules: you must not take possession of the sale proceeds, as doing so would trigger taxable boot. Instead, the funds go directly to your Qualified Intermediary who holds them until you are ready to reinvest them into your replacement property.

4. Meet All Required Deadlines

Timing is everything in a 1031 exchange. There are two key deadlines you must follow:

• 45-Day Rule: Identify potential replacement properties within 45 days of selling your original property

• 180-Day Rule: Complete the purchase of your new property within 180 days

Missing these deadlines will invalidate your exchange, so it’s essential to plan ahead and stay organized.

Get Professional Help with Your 1031 Exchange of Real Estate

Don’t leave your 1031 exchange up to chance. Do everything in your power to set yourself up for a successful, 100% tax-deferred exchange by working with a qualified intermediary. CPEC1031, LLC offers qualified intermediary services to clients throughout the United States. Our team has extensive experience facilitating exchanges of all shapes and sizes (from forward exchanges to reverse exchanges). Let us take care of the details so you can focus on your future investment. Reach out to our team today to set up a time to chat with a qualified intermediary about 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved