Many financial planners have clients who may be interested in 1031 exchanges. In this article, we are going to offer up a few 1031 exchange tips for financial planners advising their clients on section 1031.
Keep Your Client’s Money Working for Them
The greatest thing about 1031 exchanges is that they let you defer capital gains taxes and keep your money working for you over time in a continued investment.
Work with a Qualified Intermediary
Working with a qualified intermediary is the best way to ensure the success of a 1031 exchange. A qualified intermediary knows the 1031 exchange process inside and out and can advise you (and your client) on the best course of action.
The More Prep Time, The Better!
If you have a client who is interested in pursuing a 1031 exchange of real estate, encourage them to start the process early. A little prep work goes a long way when it comes to 1031 exchanges. It’s a good idea to have at least an idea of what replacement property you want to exchange into before beginning the process. There is also paperwork that needs to be finalized for the closing table so it’s best to give as much lead time as possible.
Minnesota Qualified Intermediaries
CPEC1031 has been providing 1031 exchange services to clients throughout Minnesota and the United States for over two decades. We work with title closers, realtors, real estate attorneys, financial planners, and more! Our intermediaries can help you through the entire 1031 exchange process from start to finish, ensuring that you understand what’s happening every step of the way. Contact us today at our downtown Minneapolis offices or at one of our satellite offices located around the country!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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