Blog

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

April 22, 2021 by Jeff Peterson

Consider a 1031 Exchange in Your Retirement Planning

There’s a lot to consider when planning for retirement. One useful retirement planning tool that many people don’t even think of is the 1031 exchange. In this article, we’re going to talk about how to rethink your tax considerations when planning for retirement.

Tax Considerations

One of the biggest factors involved in retirement planning is taxes. You want to prepare yourself for retirement in the most tax-advantageous way possible. There are a lot of strategies that should be discussed with your financial planner, CPA, or tax advisor.

Consider How a 1031 Exchange Might Fit Into Your Retirement Plan

A 1031 exchange can be a great retirement planning tool. If you currently own a management-intensive property that you don’t want to deal with in retirement, a 1031 exchange allows you to sell that property and acquire another one while deferring your capital gains taxes. As a result, you can exchange your management-intensive property for a property that provides more hassle-free passive income.

Set up Your Like-Kind Exchange

Engaging in a 1031 exchange, rather than an outright sale, of your real estate can help you avoid a huge capital gains tax windfall. While every taxpayer can avail themselves of the tax-saving benefits of a 1031 exchange, the exchange process is complicated and requires the help of a pro. That’s where the qualified intermediaries at Commercial Partners come in. We have more than two decades of experience facilitating 1031 transactions for clients in Minnesota and across the United States. Contact us today for help setting up your like-kind exchange.

April 20, 2021 by Jeff Peterson

Consolidating Commercial Properties with 1031 Exchanges

If you own a lot of little invest properties your energies are spread over a bunch of different properties over a broad geographic space. That’s a lot of furnaces, and roofs, and properties to keep an eye on.

Many investors use 1031 exchanges to sell a bunch of little relinquished properties and consolidate that money into one centralized replacement property. If your primary business is to be a real estate broker but you happen to own a bunch of little multifamily housing units, why not sell those little multi-family housing units and purchase an office building in which you can put your real estate brokerage company and maybe still have some space to rent out to a title company, or a mortgage processing company so that you can really focus your equity and your attention on your core business, which is being a real estate broker.

Selling a bunch of little relinquished properties, and pooling those proceeds into one centralized property allows you to focus your attention and maximize the efficiency of your operation.

April 19, 2021 by Jeff Peterson

4 Reasons a 1031 Exchange May Be Beneficial

There are many benefits to doing a 1031 exchange (instead of selling) your real estate. But many investors are still hesitant to exchange their property in a 1031 transaction. In this article, we are going to walk through four reasons why it’s a good idea to 1031 exchange your real property.

Keep your Money Working

Typical real estate transactions involve hefty capital gains tax bills. With a 1031 exchange, you can avoid paying these taxes and use your net proceeds to purchase better investment property.

Compound Your Wealth

A 1031 exchange allows you to maximize your gain by moving your equity into the best investments available to you.

Get Rid of Troublesome Properties

If you have an older property that requires a lot of maintenance or management, a 1031 exchange can allow you to exchange out of that property and into a newer property that is less intensive from a management perspective.

Diversify Your Portfolio

1031 exchanges can be done between different business segments and geographic areas. They are a great way of diversifying your portfolio and expanding your investments.

St. Paul Like-Kind Exchange Company

If you’re selling real estate and want to avoid getting hit with a capital gains tax windfall – consider the 1031 exchange, which allows you to defer those taxes and maximize your gain. With decades of experience, our qualified intermediaries are well versed in the like-kind exchange process and can help ensure your exchange goes off without incident. Give us a call today to set up an appointment with a Minnesota qualified intermediary at our downtown Minneapolis office.

April 15, 2021 by Jeff Peterson

2 FAQs About 1031 Exchanges in Minneapolis

Recently we helped a local real estate broker facilitate a 1031 exchange for their client. The client was selling an up/down duplex in Minneapolis, with the intention of rolling the proceeds into a fourplex property with a like-kind exchange. Here are some questions relating to this particular 1031 exchange.

Commercial Plus Residential Space

Is there a problem with one of the properties having commercial rental space as well as residential? One place, in particular, has three apartments with 2800 sq ft of commercial space below.

The replacement property must be held for investment or business purposes and may be residential or commercial rentals (or a combination of both).

Rolling Proceeds into More than One Property

Is it possible to roll the sales proceeds from the relinquished property into more than one replacement property?

You are allowed to purchase multiple replacement properties (provided that they are designated / Identified in writing within 45 days of the closing of the relinquished property).