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Mark Goodman Commercial Partners Title, LLC is dedicated to providing unparalleled customer service, commercial title insurance solutions, and creating great relationships. It is vital that we continue to find ways to execute on these promises to our clients; and with the advancement of social media, we believe we can take our values and ideals to a new level.

Please take some time to revisit our website and take advantage of our social media presence.

I hope you find our blog to be informational and educational. We want to continue to be your Experts in commercial title insurance.

I welcome your feedback.

Cordially, Mark

July 17, 2018 by Jeff Peterson Leave a Comment

What is the 1031 Exchange Incidental Property Rule?

There are a lot of rules that you have to follow when conducting a 1031 exchange of real estate. One such rule is the incidental property rule. In this article, we’re going to discuss the incidental property rule and what it means for in a 1031 exchange of real estate.

Incidental Property Rule

The incidental property rule is one of many rules that pertain to 1031 exchanges of real property. This particular rule relates to the 45 day replacement property identification rule that states that the taxpayer must identify in writing their replacement property within the first 45 days of their exchange period.

If this identified replacement property includes any incidental property that would normally be transferred with the property in a typical transaction, that incidental property does not need to be identified. One additional caveat is that the incidental property cannot be more than 15% of the value of the larger replacement property. As an example, consider an apartment complex that has laundry machines, and furniture. These items of incidental property would not need to be separately identified unless they total more than 15% of the value of the apartment complex.

Minnesota Like-Kind Exchanges of Real Property

Commercial Partners Exchange Company has two decades of experience facilitating like-kind exchanges of real property. We work with clients in Minnesota and around the country. A qualified intermediary works with the taxpayer conducting the exchange. We can answer any questions you might have, prepare all of your documents, and advise you throughout the process. Contact us today to get your exchange up and running!

July 16, 2018 by Jeff Peterson Leave a Comment

How Exactly do you Start a 1031 Exchange?

Exchanging property under section 1031 of the Internal Revenue Code can lead to significant tax deferral when done correctly. However, many taxpayers who want to do a 1031 exchange don’t know where to start. In this article, we’re going to talk about the process of getting a 1031 exchange started, and the information you need to gather before you begin the process.

Initial Information

The first thing you need to do is gather some initial information that you can send to your qualified intermediary in order to begin the process. Here’s some initial information you should get together:

Your contact info – name, DOB, phone, etc.
Relinquished property info – projected closing date, value / debt / equity of the property, how you hold title to the property, the original purchase price, etc.
Replacement property into – how you plan to take title to your new replacement property, the amount / type of debt on the new replacement property, etc.

This is just the tip of the iceberg, but this information will be enough to get the ball rolling. Your qualified intermediary will work with you throughout the exchange and request additional information when needed.

1031 Exchange Property

With a 1031 exchange, you can defer your capital gains taxes when you sell a piece of real property. This can really add up and result in a significant amount of tax savings when selling real estate. But 1031 exchanges aren’t as easy as many taxpayers think. We’ve seen many taxpayers go into an exchange without the necessary preparation, only to have their exchanges fail. That’s why it’s essential to work with a qualified intermediary who can advise you, prepare your documents, and walk you through each step of the exchange process. Contact us today to speak with our 1031 exchange intermediaries about your exchange!

July 12, 2018 by Jeff Peterson Leave a Comment

1031 Exchanges & House Flippers

House flipping is the act of buying a house for the purpose of quickly reselling it at a profit. It is a common strategy used by many real estate investors. But can a flipped property be used in a like-kind exchange transaction? This article is all about 1031 exchanges and house flippers. Specifically – whether or not you can utilize a 1031 exchange for property that has been flipped.

Do House Flips Qualify for 1031 Exchange?

All 1031 exchange property has to be held for the right purpose – that is, for use in your trade or business, or for investment. As a result, property that is primarily held for re-sale (i.e. a flipped house) may not qualify for 1031 exchange treatment. In essence, if you try to do a 1031 exchange with a property that you just bought and flipped over the course of a few months, the IRS is likely to flag that 1031 exchange as inappropriate.

There are, however, strategies you can use to circumvent this and potentially use flipped property in a 1031 exchange transaction. For example, if you rehab a property and then rent it out for several years, you could likely use it in a subsequent 1031 exchange.

Exchange Your Property

A 1031 exchange is one of the best ways to defer capital gains taxes when selling property in the United States. If you are considering the tax-saving benefits of a 1031 exchange, your first step should be to contact a qualified intermediary who can help you through the proceedings. The 1031 exchange intermediaries at Commercial Partners Exchange Company have twenty years of experience working with clients on their 1031 exchanges. They bring that experience to the table with each and every commercial transaction. Contact us today to schedule a time to chat with one of our intermediaries about your exchange.

July 10, 2018 by Mark Goodman Leave a Comment

Commercial Partners Title Recent Sponsorships

Commercial Partners Title recently sponsored a couple of great events to raise funds for some very worthy causes:

Commercial Partners Title, LLC recently sponsored a golf hole in the MN Association of Realtors (MNCAR) golf event on June 19th. As part of our sponsorship, we hosted a game that asked participants to make a voluntary contribution that ultimately raised over $300.00 in donations for your charity. Commercial Partners Title agreed to match any amount collected that day to bring the total to $630.00.
Commercial Partners Title, LLC recently sponsored a golf hole in the MN Shopping Center Association (MSCA) golf event on June 18th. As part of our sponsorship, we hosted a game that asked participants to make a voluntary contribution that ultimately raised over $300.00 in donations for your charity. Commercial Partners Title agreed to match any amount collected that day to bring the total to $640.00.

We are proud to be associated with these wonderful organizations!

Minneapolis Title Company

At Commercial Partners Title, we are recognized as experts in commercial transactions both in Minnesota and across the United States. For decades we have been working hand-in-hand with our clients to ensure that their real estate deals go smoothly. Our team consists of title closers, underwriters, escrow agents, and more. We are well equipped to handle even the most complex of commercial real estate transactions. Contact us today to set up an appointment at our downtown Minneapolis office and see how we can help with your commercial real estate transaction!