3 Things a Qualified Intermediary Wants You to Know Before Starting a 1031 Exchange

In the realm of 1031 exchanges, knowledge is power. In this article, we are going to outline a few things a qualified intermediary wants you to know before beginning a 1031 exchange.

100% Tax Deferral is the Ultimate Goal

The greatest benefit of a 1031 exchange is that it offers an opportunity to defer 100% of your capital gains taxes on the sale of like-kind property held for investment or business purposes. 100% capital gains tax deferral is the ultimate goal in most 1031 exchanges. However, if you fail to meet the various requirements for full tax deferral, you can still partially defer your capital gains taxes.

There are Multiple Types of 1031 Exchanges

Many people aren’t aware that there are actually several different types of 1031 exchanges, each with their own purpose. There’s the standard forward exchange that most people think of when they hear about section 1031. There’s also the reverse exchange, which allows you to lock down a replacement property first before selling your relinquished property. And finally, there’s the build-to-suit exchange, during which you can construct improvements to your 1031 property as a part of the process.

Preparation is Key

Preparation is your greatest ally in a 1031 exchange, but many taxpayers don’t give themselves enough time before starting their exchange to fully prepare. Nobody wants to be scrambling to find a suitable replacement property at the last minute. Give yourself plenty of lead time and reach out to a qualified intermediary early on in the process to set yourself up for a successful 1031 exchange.

CPEC1031, LLC – Your 1031 Exchange Resource

CPEC1031, LLC has been facilitating 1031 exchanges in Minnesota and across the United States for more than two decades. We have extensive experience working on forward exchanges, reverse exchanges, build-to-suit exchanges, and everything in between. If you are curious about how the 1031 exchange process works, don’t hesitate to reach out to our team of qualified intermediaries. We can help you determine if your property is well-suited for 1031 exchange. Contact us at our Minneapolis office today to set up a time to chat.

• 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

The Importance of the 45-Day Identification Period in a 1031 Exchange

There are several essential deadlines in a 1031 exchange, one of which is the 45-day exchange period. In this article, we discuss the importance of the 45-day identification period in a 1031 exchange.

What is the 45-Day Exchange Period?

The 45-day exchange period is the time during which you must identify (in writing) your 1031 exchange replacement property. This 45 day identification period begins when you sell your relinquished property and runs concurrently with your 180-day exchange timeline.

If you wish to exchange into a replacement property but you fail to identify it during this 45 day period, you will not be able to utilize that property in your 1031 exchange. In other words, this deadline is very strict. That’s why it’s important to give yourself enough lead time to prepare for your exchange before you begin. Some taxpayers even like to line up their replacement properties prior to selling their relinquished property so they know they will be able to complete the process within these time frames.

Get Your 1031 Exchange Started Today

Contact a qualified intermediary from CPEC1031, LLC today. Our team is based in Minneapolis, but we serve clients throughout the United States. For decades, we have been facilitating like-kind exchanges under section 1031 of the Internal Revenue Code. Let us help you with your exchange. Whether you’re conducting a forward exchange, reverse exchange, or build-to-suit exchange, we have the knowledge and skill to bring your like-kind exchange across the finish line. You can reach out to us at our Twin Cities office to set up a time to chat with our team about 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

The Best Time to Enter Into an Exchange Agreement with a Qualified Intermediary

Timing is an essential factor in any 1031 exchange. One of the most common questions taxpayers have about the 1031 exchange process is when to start working with a qualified intermediary. In this article, we discuss when you should enter into an exchange agreement with a qualified intermediary during the 1031 exchange process.

Short Answer: As Early As Possible

The short answer to the question of when to engage a qualified intermediary is as early as you can. 1031 exchanges need to abide by strict timelines in order to be successful. As a result, it’s important to plan ahead and give yourself enough time to meet these deadlines and deal with any obstacles that crop up along the way.

Reach out to a qualified intermediary and enter into an exchange agreement before you even begin the 1031 exchange process. That will give you and your intermediary enough time to discuss the various steps of the exchange and make sure you are well prepared for everything during the process.

1031 Exchange Company in Minneapolis, MN

1031 exchanges can be difficult to manage, especially for the inexperienced. It’s important to work closely with a qualified intermediary throughout the process to set yourself up for 100% capital gains tax deferral. At CPEC1031, LLC, our intermediaries have decades of experience in the 1031 exchange industry. We’ve facilitated like-kind exchanges under section 1031 of the Internal Revenue Code across the United States. No matter where your property is located, we have the skills and experience needed to guide you through the 1031 exchange process. Contact us today to learn more about our services and see if you are a good candidate.

• 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 to Find the Right Replacement Property for Your 1031 Exchange

Finding the right replacement property is one of the most difficult parts of a 1031 exchange. In this article, we offer up a few tips for finding the right replacement property for your 1031 exchange.

Explore Different Geographic Areas & Industries

One of the great things about a 1031 exchange is that you can exchange out of and into properties in completely different geographic areas. You can sell a relinquished property in Minnesota and purchase a replacement property in Arizona (so long as they are both like-kind properties held for investment or business use). This also applies to different industry segments. You can exchange between retail property, rental property, DSTs, and more!

Consider a Reverse Exchange

If you’re having trouble locking down a replacement property in a hot seller’s market, consider doing a reverse 1031 exchange. While a forward exchange requires you to sell your relinquished property first, a reverse exchange allows you to pick up your replacement property first. You still need to complete the process within your 180 day exchange period, but this allows you to nail down a replacement property early in the process.

1031 Exchange Services

CPEC1031, LLC offers 1031 exchange services to taxpayers throughout the state of Minnesota and across the United States. We can help guide you through the 1031 exchange process, no matter how complex your transaction might be. With over two decades of experience, we have the skills and expertise to help ensure your capital gains tax deferral under section 1031 of the Internal Revenue Code. Contact our team today to set up a time to chat about your 1031 exchange. We can answer all of your questions and help you understand the various rules and requirements of a 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved

What Makes Section 1031 Such a Powerful Tax Provision?

A 1031 exchange is a versatile tool used by many tax-savvy investors, but a lot of people aren’t aware of the true extent to which a 1031 exchange can be used as an investment strategy. In this article, we are going to talk about why the 1031 exchange is such a powerful tax-saving tool.

Tax Deferral

Of course, the first thing most people know about 1031 exchanges is that they allow you to defer your capital gains taxes on the sale of like-kind investment real estate. This allows your money to continue compounding and building over time in a continued investment.

Additional Benefits Beyond Tax Deferral

1031 exchanges also offer some additional benefits beyond deferring taxes. From a broader view, they help stimulate the economy by moving capital around to different geographic areas and industry segments. A like-kind exchange can also act as an opportunity to get out of a management-intensive property (such as a rental property) and into a more hands-off property (such as a DST).

Section 1031 is a Powerful Tax Provision

A 1031 exchange can help you defer capital gains taxes when you sell like-kind investment real estate. Section 1031 has been a part of the tax code in some form for over 100 years. This powerful tax provision has been used by countless investors over the decades to defer capital gains taxes and compound wealth over time in a continued investment. The best part is that the 1031 exchange can be utilized by any US taxpayer! Investors large and small can defer capital gains taxes under section 1031. Contact CPEC1031, LLC today to learn more about the 1031 process and see if you are a good candidate 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.

© 2026 Copyright Jeffrey R. Peterson All Rights Reserved