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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.

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

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Cordially, Mark

January 26, 2021 by Jeff Peterson

Do I Need to Receive all 1031 Exchange Identified Replacement Properties?

Many taxpayers will identify multiple potential replacement property candidates during the 45 day identification period. They don’t know if they’re going to be one, two, three, or more potential replacement properties but they want to keep hope alive as to those potential candidates.

95% Rule

You do not have to buy all of the identified properties under the three property rule or the 200% rule. If, however you’re using the 95% rule, you do have to actually receive 95% of the value of those identify properties that you listed. Lots of people will identify backup properties and multiple replacement properties in order to increase the chance of success for them to complete their exchange.

General Requirement

The flexibility of the identification rules should not be confused with the general requirement that in order to defer 100% of the gains you need to continue your investment into properties of equal or greater Value, Equity and off-set any Debt Relief.

January 25, 2021 by Jeff Peterson

The Importance of Record Keeping in a 1031 Exchanges

A 1031 exchange allows you to defer your capital gains when selling real estate, as long as you pass your sales proceeds into replacement property. You can continue exchanging property in this manner for years, decades, or even indefinitely. But doing so makes it absolutely essential to keep full and accurate records of all your 1031 exchanges. In this article, we’re going to discuss the importance of keeping accurate records for all of your 1031 exchanges.

Always Be Prepared for an Audit

As a good rule of thumb – always be prepared for an audit. You never know when or if you’ll be audited, but it’s best to prepare yourself accordingly for the possibility. Having full and accurate records of all your 1031 transactions will make things a lot easier in the event of an audit.
In addition, make sure that your records are easily accessible and comprehensible to your heirs and/or executor, in the even that your 1031 properties end up in the hands of your estate.

1031 Exchange in St. Paul, MN

If you are looking to save money when selling real estate – a 1031 exchange allows you to defer your capital gains taxes on your sale as long as you move that money into a continued investment. This has the added benefit of keeping your money compounding and building wealth over time. Talk with one of our qualified intermediaries now to see if you are a good candidate for 1031 exchange. Our intermediaries have been helping investors with their like-kind exchanges for more than twenty years.

January 21, 2021 by Jeff Peterson

How to Find a Replacement Property Before Selling Your Relinquished Property

Savvy investors like to think ahead when they’re doing a 1031 exchange. Ideally, you want to gain the advantage of locking up a replacement property before selling the old relinquished property. Here’s a common question people ask in this situation:

“Is it permissible for me to sign a purchase agreement or an option agreement to contractually find a seller to sell me a replacement property even before I close on my old relinquished property? Will that somehow foul up my 1031 exchange?”

Locking Up a Replacement Property

The answer is you can lock up a replacement property, you just can’t close on it before you’ve first disposed of the old relinquished property. So signing a purchase agreement, or an option agreement are proven practices. You just don’t want to inadvertently acquire them before you sell the old relinquished property.

Reverse 1031 Exchange

That being said, if you have to close on the replacement property first (before selling your relinquished property) there’s a solution for that too.

January 19, 2021 by Jeff Peterson

Tips for Using a Reverse 1031 Exchange in a Seller’s Market

A competitive real estate market can be a blessing and a curse for investors. On the one hand, it’s great to be able to sell property quickly when needed. On the other hand, if you’re looking to reinvest your money into another property, it can be difficult to find the property you want before it gets snatched up by another buyer. This is where a reverse 1031 exchange can be a great help. In this article, we are going to explain how to use a reverse 1031 exchange to your advantage in a hot seller’s market.

Benefits of a Reverse Exchange

Using a reverse exchange, you can purchase your replacement property first, and subsequently sell your relinquished property. This allows you to snatch up the perfect replacement property if it comes up before you are able to sell your relinquished property.

Of course, the standard 1031 exchange time frames still apply to a reverse exchange. Namely, you have 180 days in total to complete your exchange – beginning with the purchase of your replacement property.

Twin Cities Reverse Exchange Company

At Commercial Partners Exchange Company, our qualified intermediaries have been assisting clients with reverse exchanges of real estate for more than two decades. We are fully equipped to guide you through every step in your 1031 exchange. Our intermediaries can prepare all of your exchange documents, answer all of your questions, and advise you on appropriate replacement properties. Contact us today at our downtown Minneapolis office to speak with one of our qualified intermediaries about your reverse 1031 exchange.