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Leah Badach, 1031 Exchange Specialist serving Minnesota

1031 Exchange Specialist Minnesota

Certified Exchange Specialist

The Sontag Group The Sontag Group

Minnesota's trusted qualified intermediary for seamless 1031 tax-deferred exchanges on rental properties, commercial real estate, and farmland.

10+
Years
5,000+
Exchanges
$1B+
Facilitated

1031 Exchanges in Minnesota

Looking to defer capital gains taxes on your Minnesota investment property? A 1031 exchange lets you sell and reinvest into like-kind property while keeping 100% of your equity working for you. Minnesota's high tax rate makes 1031 exchanges critical for preserving equity.

Minnesota taxes capital gains as ordinary income at up to 9.85% — one of the highest rates in the country. Working with a Certified Exchange Specialist ensures you meet every IRS deadline and maximize your tax deferral — whether you're exchanging rental properties, commercial real estate, and farmland in Minneapolis, St. Paul, Rochester, Duluth.

Leah Badach, CES at The Sontag Group, has facilitated over 5,000 exchanges totaling more than $1 billion nationwide, including forward exchanges, reverse 1031 exchanges, DST exchanges for passive investors, and construction/improvement exchanges.

Minnesota 1031 Exchange FAQ

Common questions from Minnesota investors

How does a 1031 exchange work in Minnesota?
A 1031 exchange in Minnesota follows the same IRS rules as anywhere in the U.S. You sell an investment property, a qualified intermediary holds the proceeds, you identify replacement properties within 45 days, and close within 180 days. Minnesota taxes capital gains as ordinary income at up to 9.85% — one of the highest rates in the country.
Do I need a qualified intermediary in Minnesota?
Yes. IRS rules require a qualified intermediary (QI) to facilitate your 1031 exchange. The QI holds your sale proceeds and ensures compliance with all deadlines. You cannot touch the funds yourself, or the exchange is disqualified. Talk to a certified QI today.
What properties qualify for a 1031 exchange in Minnesota?
Any property held for investment or business use qualifies, including rental properties, commercial real estate, and farmland. Primary residences and fix-and-flip properties do not qualify. Your replacement property can be in any U.S. state — you're not limited to Minnesota.
Can I exchange my Minnesota property for one in another state?
Absolutely. 1031 exchanges allow you to sell in Minnesota and buy replacement property anywhere in the United States. Many investors use this to diversify into different markets or move into passive investments like DSTs.
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