Many taxpayers conducting 1031 exchanges of real estate have questions about who to hire as their qualified intermediary. In this article, we are going to talk about the roles and restrictions of a qualified intermediary from a geographical perspective. Specifically, we’ll discuss whether your qualified intermediary can live in a different state from you and/or your property.
Intermediaries Across State Lines
Section 1031 is a federal statute that is applied to all 50 states. That’s how we are able to conduct exchanges for clients across the country. Your qualified intermediary can live and work in a completely different state and still facilitate your exchange. You can live in New York and hire an intermediary in Minnesota and it will be perfectly fine. In fact, it happens all the time!
All that being said, there are various state and local customs that can impact a like-kind transaction. It’s important to work with a qualified intermediary who has experience and knowledge in the location of your transaction.
Section 1031
The 1031 exchange professionals at CPEC1031, LLC have more than twenty years of experience facilitating exchanges for taxpayers in many different business segments. Our qualified intermediaries are your guides to exchanging property under section 1031. We can help you identify replacement property and prepare all of your necessary documentation. Contact us today to get your exchange started. Our primary office is located in downtown Minneapolis, but we work with clients throughout the Twin Cities, greater Minnesota, and across the country!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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