Involving a qualified intermediary with your estate planning is beneficial for property owners in pursuit of a suitable 1031 replacement property. By providing for the Deferred Sales Trust as an explicit option within the 1031 exchange agreement, the seller creates a backup plan to protect their tax deferral in the event a suitable replacement property cannot be found or closed within the required time frame.
Considering a Qualified Intermediary
When considering a qualified intermediary, you should be careful to choose an experienced intermediary that is able to prepare the exchange documents to include a broad range of possibilities available for your tax deferral. By choosing a team that has completed thousands of 1031 exchanges, with the added advantage of a number of these transactions combining 1031 exchange and potential DST, you are able to keep all of your options open.
Safety and security is the name of the game when it comes to 1031 exchanges and deferred sales trust transactions. When we facilitate one of these transactions, exchange proceeds are wired directly from the relinquished property closing to a separate, segregated, dual-signature escrow account and distributed to complete the 1031 exchange or DST transaction. As an added security procedure, all disbursements of the exchange proceeds must be signed and co-authorized by the customer in writing before the funds are released.
Minnesota Like-Kind Exchanges of Real Estate
The like-kind exchange offers tax payers large and small an opportunity to defer their capital gains taxes on the sale of real estate so long as they abide by the rules set forth in section 1031 of the Internal Revenue Code. Avoiding a hefty capital gains tax hit allows you to keep your money working for you in a continued investment, compounding and building wealth over time. Give us a call today to speak with a Minnesota qualified intermediary about your potential real estate exchange.
- 1031 Hotline: If you have questions about 1031 exchanges and DSTs, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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