TC Fair, 1031 Exchange Intermediary in Minnesota

TC Fair

Minnesota

TC Fair, IPX1031 Minnesota


Assistant Vice President

222 S. Ninth Street, Suite 3060, Minneapolis, MN 55402

Direct: (312) 223-3472
Mobile: (312) 520-0897
Fax: (312) 223-4710
Email: tc.fair@ipx1031.com

IPX1031 Midwest Office


10 South LaSalle Street, Suite 3100
Chicago, IL 60603

Phone: (312) 223-2369
Toll-Free: (866) 490-1031
Fax: (312) 873-3893 

How to Start a 1031 Exchange in Minnesota

In order to have a successful 1031 Exchange in Minnesota, the exchange has to be opened prior to the closing on the property you’re selling.

To start our process, we simply need a copy of the contract and title commitment for the property you’re selling. That will allow us to draft all of the required exchange documents and open the appropriate accounts for your transaction.

From closing, the proceeds from the sale will be wired to the account we have opened for you. Also, your two time periods begin. You will have 45 days to identify potential replacement property, and 180 days to close.

Once you’re ready to purchase your identified property, we will need: a copy of the contract, wiring instructions, and the closing agent’s contact information. That will allow us to draft the required documents to authorize us to send out a wire for your purchase(s).

IPX1031 MN Exchange Expert TC Fair
TC Fair, Assistant Vice President and Business Development Officer, is our IPX 1031 Exchange expert in Minnesota. TC specializes in Real Estate Exchanges, keeping up to date on the latest 1031 Exchange rules and regulations. Prior to joining the Investment Property Exchange Services, Inc. team, TC supported IPX1031 as a Director of Legal Recruiting for a prominent, national staffing agency. TC oversees all 1031 Exchange business in Minnesota including Minneapolis, Saint Paul, Rochester, Duluth, Bloomington, Minnesota City, Brooklyn Center, St. Cloud, Mankato, Brainerd, Bemidji, and Eagan.

IPX1031 Exchange Seminars
IPX1031 provides seminars for continuing education credits as well as custom and personalized seminars on tax deferred exchange topics for attorneys, CPAs, advisors, brokers, REALTORs, agents, escrow, investors and taxpayers. To find out about a seminar nearest you, or to schedule a seminar for your office, please contact me.

IPX1031 Minnesota Office
We are located in Minneapolis’ historic Downtown West neighborhood in the Chicago Title office located at the corner of 3rd Ave S & S 9th St.  While you are downtown at our IPX1031 Minneapolis office, be sure to take advantage of the Music Wall around the corner! A fierce and unique photographical moment. And if you’re looking for more scenic adventures, the Foshay Museum and Observation Deck provides that to you. Visit what was once the tallest building in the Midwest and soak in the views of Minneapolis from the 31st floor observation deck.

Minnesota Events IPX1031 Attends
TC attends the Real Estate Institute event every year held in Minnesota. It has been described as the ultimate event for real estate attorneys in Minnesota attracting thousands of people every year. Their website goes on to say: The Real Estate Institute is the premier real estate conference in the nation. That reputation is built on more than 30 years of outstanding annual program line-ups, educating thousands of real estate lawyers and professionals from Minnesota and across the Upper Midwest. The Institute provides a complete update on all new developments regarding your practice – plus practical, how-to sessions. And by offering 50+ sessions, the Institute ensures that you can construct an agenda tailored to your particular work, interest, and experience level.

What My Customers Are Saying

“TC and the IPX1031 team were pros. A 1031 exchange has quite a few moving pieces and it is clearly something you should not leave to chance (or to general tax accountants). I highly recommend working with TC and team.”

“The best of the best, highly recommend.”

“TC was fantastic to work with. So knowledgeable and thorough. Answered every question and made sure I was taken care of! Would highly recommend.”

Start an Exchange with TC Fair

Minnesota 1031 Resources & Information

What is Like Kind for 1031 Exchanges?

 

How to get Full Benefit of 1031 Tax Deferral 

 

Identifying 1031 Exchange Property

 

How to Maintain Taxpayer Continuity in a 1031 Exchange

 

Minnesota 1031 Exchange Process & FAQs

Let’s start with the basics. What is a 1031 Exchange? A 1031 Exchange is a simple transaction that allows you to differ the taxes on the sale of investment real estate by purchasing like kind investment real estate in a specific time frame. Simply put: a sale, plus a purchase, equals a tax deferral.

For us to start the exchange process, I simply need a copy of the contract and title commitment for the property being sold. Once you have a contract, please feel free to reach out to me to discuss your specific deal. An exchange must be opened prior to the closing of the sale. There is no way to retroactively save an exchange if this does not occur.

There are a few rules you have to follow in order to have a successful exchange in MN.

  1. In order to get the full benefit of the deferral there are two rules you have to follow. One: you must purchase property that is equal to or greater in value to what you’re selling based off the contract sales price. And two: you must use all of the proceeds from that sale towards your purchase first.
    • For example: I’m selling some Minnesota property for $1M. Let’s say there is a 300k loan on the property. That loan would be paid at closing and the 700k would be wired to the exchange account. The rules say I must purchase a million-dollar asset and use the 700k in equity first. Whether I chose to get another 300k loan, or throw in 300k in cash, or do a combination of the two…it is completely up to me.
    • There is a misconception that it is all or nothing when doing a 1031 Exchange, however that is not true. A Partial Exchange is absolutely possible. For example:  You’re selling your property and all of your money is tied up in the property, so you need to take $100k at closing. You can do that, but those funds will be taxable to you dollar-for-dollar as profit. Similarly, if you’re selling for $1M and buying for $900k, that $100k shortfall is taxable to you dollar-for-dollar as profit.
  2. The IRS requires that you maintain taxpayer continuity. Simply put, the taxpayer that is selling the property must be the same taxpayer that is purchasing the Replacement Property.
    • For example, I own a building in my personal name that I am selling in a 1031 Exchange. I have a few options as to how purchase my Replacement Property. I can, of course, purchase in my personal name to complete my exchange. Or I can purchase in a single-member LLC, of which I am the sole member, or a Revocable Trust of which I am the trustee. All of the entities I mentioned are seen as pass through entities for tax purposes. Although the title holder is different, the underlying taxpayer is the same.
  3. The property in your exchange must be “like kind” to one another. All investment real estate is like kind to other investment real estate. You can sell residential property and buy commercial; sell commercial and buy farmland; sell farmland and buy industrial property. When it comes to transactions outside of the US, it has to be another piece of foreign land. Foreign for foreign; domestic for domestic.
  4. There are two time periods you need to be aware of: you’ll have 45 days to identify potential Replacement Property and 180 days to close. The clock starts ticking for both from the closing of your sale. Keep in mind you can only purchase what you’ve identified within the 45-day period. The identification has to be specific and unambiguous and done in writing, signed by the taxpayer, and sent to us within the 45-day period. Within those 45 days, you do have some wiggle room. You can identify some property, revoke the identification and identify something else. But once the 45th day hits, you are locked into what you’ve identified.
    • Now, you couldn’t just hand us the phonebook as an identification – you are limited to the amount of properties you can identify.
    • The three-property rule allows you to identify up to three properties with no limitation on the aggregate value of said properties. I’m selling a property for a million dollars; I’ve identified 3 properties that add up to 3 million dollars. That is totally doable. Now if I identified 4 properties or more…then we fall into some specific rules we have to follow. Keeping with our example, if I identified 4 properties – the aggregate value of those 4 properties cannot exceed 200% of the value of the relinquished property. Ultimately, those 4 properties cannot exceed 2 million dollars. This is what they call the 200% rule. If they did exceed the 200% rule, then we now enter the 95% rule. The 95% rule states that you have to purchase at least 95% of what you’ve identified. So basically everything.
  5. In order to successfully complete a 1031 Exchange, you have to go through a disinterested, third party known as a Qualified Intermediary or QI, which would be us at IPX1031. The reason why we are added to the transaction is because the IRS says if at any point the taxpayer has constructive receipt of the funds, those funds become taxable to them. So, our main role is to hold and safeguard your funds for the duration of the exchange. The fact that we are required to hold the proceeds from the sale is the main reason a 1031 Exchange must be set up before the closing.

TC Fair & IPX1031 are a winning combination.

See how we’re different and why.

With an office in Minneapolis, IPX1031, the nation’s largest exchange facilitator and accommodator, provides industry leading exchange services including guidance, expertise, security and key information on 1031 Exchange rules, regulations and strategy. 1031 Exchange expert, TC Fair offers you customized 1031 solutions in Minnesota to defer capital gains tax and maximize equity in your 1031 like kind investment property.

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Full Service Qualified Intermediary

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Superior Customer Service

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Owned by Fidelity National Financial (NYSE: FNF)

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$100M Fidelity Bond & $30M E&O Insurance

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$50M Written Performance Guaranty

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Attorneys & Certified Exchange Specialists (CES®)

Let’s talk about your specific needs

Customized solutions for your investment and business goals.

Why a 1031 is right for me or for my client

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deferring taxes (up to 35 to 40% of the gain)

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greater purchasing power

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improved cash flow

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portfolio diversification

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portfolio consolidation

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greater appreciation potential

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freedom from joint ownership

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estate planning for heirs

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