Qualified Intermediary

Does My Qualified Intermediary Need to Be Located In My State?

It’s important to work with a qualified intermediary whenever embarking on a new 1031 exchange. But many people have questions about how to choose the best intermediary. In this article, we are going to discuss whether or not your qualified intermediary needs to be located in the same state as your property.

1031 Exchanges Across State Lines

In a 1031 exchange, you can exchange qualifying like-kind real estate for other like-kind real estate within the United States. That means you can sell a relinquished property in Minnesota and acquire a replacement property in Florida. In fact, 1031 exchanges between states happen quite often as many taxpayers want to move their investment to different states for a variety of reasons.

Qualified Intermediaries Across State Lines

Similarly, your qualified intermediary can be from any state. They do not have to be located in the same state as your property. The one thing you should keep in mind is that there are local customs and regulations that differ from state to state. As a result, it’s important to work with a qualified intermediary who has experience facilitating exchanges in your state(s).

Start the 1031 Exchange Process Today

Whether you’ve done 1031 exchanges in the past, or you’re interested in starting one for the first time, CPEC1031, LLC has you covered. We have worked with taxpayers on all types of like-kind exchanges for over twenty years. We can put our experience to work for you and ensure your exchange goes as smoothly as possible. Reach out to our qualified intermediaries today to learn more about how a 1031 exchange can help you defer capital gains taxes when selling real estate. We work with clients across the United States.

  • 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.

© 2023 Copyright Jeffrey R. Peterson All Rights Reserved

What Can a Qualified Intermediary Do For Your 1031 Exchange?

Many people who are new to the world of 1031 exchanges have questions about the role of the qualified intermediary. In this article, we are going to discuss what a qualified intermediary can do for your 1031 exchange.

Guide You Through the Process

The exchange process seems simple on the surface, but there are a wide range of potential pitfalls. A qualified intermediary knows the process inside and out and can make sure you don’t fall prey to any common mistakes.

Prepare Necessary Documentation

As with any real estate transaction, there is a lot of paperwork that goes along with a 1031 exchange of real estate. If you miss a form or mess something up it could jeopardize your entire exchange. A qualified intermediary can take this off of your plate and prepare all of your required documents in preparation for closing.

Answer Your Questions

Every 1031 exchange is unique, and every taxpayer conducting a 1031 exchange has a lot of questions that they may not be able to find answers to online. A qualified intermediary can answer all of the questions you have regarding your 1031 exchange so you feel confident that your exchange will be a success.

Reach Out to a Qualified Intermediary

Want to learn more about deferring capital gains taxes on the sale of investment real estate? Reach out to a qualified intermediary today to walk you through the process. The earlier you get started on your 1031 exchange, the better. Making all the necessary preparations can help ensure that your exchange goes smoothly and that you defer 100% of your gains. At CPEC1031, LLC we have two decades of experience working on like-kind exchanges of real property. Contact us to see if your property qualifies for 1031 exchange treatment.

  • 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.

© 2023 Copyright Jeffrey R. Peterson All Rights Reserved

 

The Difference Between Qualified Intermediaries & Real Estate Attorneys

Real estate lawyers and qualified intermediaries play important roles in a 1031 exchange, but there are several important factors to consider in this regard. In this article, we are going to discuss the similarities and differences between qualified intermediaries and real estate attorneys in a 1031 exchange.

Related Parties

First and foremost, it’s important to note the related party’s exclusion in a 1031 exchange. Anyone who has been an agent or employee of the taxpayer conducting the 1031 exchange is not allowed to act as the qualified intermediary for said exchange. So any attorneys who have acted on your behalf or been in your employ during the past two years cannot act as your intermediary.

Two Separate, Essential Roles

Your qualified intermediary and your real estate attorney both play separate, yet essential roles in a 1031 exchange. Your real estate attorney should act as your attorney. Your intermediary, on the other hand, is supposed to act as a neutral third party in the exchange. Make sure to hire a 1031 exchange company that works exclusively in 1031 transactions.

Exchange Your Property with a 1031 

Defer your capital gains taxes on the sale of real estate today with a 1031 exchange. Anyone can conduct a 1031 exchange so long as certain requirements are met. Making sure you meet these technical requirements is essential to the success of your 1031 exchange. With two decades of experience, our intermediaries have the skills needed to manage your transaction from beginning to end. Give us a call today to talk about your 1031 exchange with one of our qualified intermediaries.

  • 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.

© 2022 Copyright Jeffrey R. Peterson All Rights Reserved

Can You Swap Qualified Intermediaries After Starting a 1031 Exchange?

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Is it possible to change my qualified intermediary (QI) after the 1031 exchange has been initiated, and funds have been transferred to the QI?

Err on the Side of Safety

To be on the safe-side, if you have already initiated your 1031 exchange and transferred funds, you should stick with the qualified intermediary that you started with.

According to § 1.1031(k)-1(g)(4) (iii), a qualified intermediary is a person who:

  • Is not the taxpayer or a disqualified person (as defined in paragraph (k) of this section), and

  • Enters into a written agreement with the taxpayer (the “exchange agreement”) and, as required by the exchange agreement, acquires the relinquished property from the taxpayer, transfers the relinquished property, acquires the replacement property, and transfers the replacement property to the taxpayer.

QI Requirements for a 1031 Exchange

As per this regulation, the qualified intermediary must have entered into an exchange agreement and been a conduit on both the Relinquished Property and Replacement Property.  Once the qualified intermediary has facilitated the exchange out of the Relinquished Property, then they are the only party that can satisfy the rule and fulfill the function of qualified intermediary.

CPEC1031, LLC

If you’re considering a 1031 exchange of real estate, it’s important to have a qualified intermediary by your side that can guide you through the process. At CPEC1031, LLC, we have been facilitating 1031 exchanges for over two decades. We have the skills and experience to help ensure your exchange is a success. Contact us today at our downtown Minneapolis office to learn more about the services we provide and get started with your 1031 exchange!

  • 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.

© 2021 Copyright Jeffrey R. Peterson All Rights Reserved

3 Tips for Finding the Perfect Qualified Intermediary

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Many taxpayers are interested in doing a 1031 exchange but don’t know how to find a great qualified intermediary. In this article, we are going to offer some tips for finding a great qualified intermediary for your 1031 exchange of real estate.

Ask For a Referral

An excellent place to start is with your close circle of family and friends. Ask around to see if anyone you know has done a 1031 exchange before. If so, they may have a good recommendation for you.

Do Some Research

If you can’t get a referral, take to the Internet and do some research. Do a Google search for “Qualified Intermediary” or “1031 Exchange Company” in your area and you should find numerous options. Then it’s a matter of doing your due diligence. Check out each intermediary’s website and get to know them a bit better. See if they have any reviews from previous clients, and make sure they do the type of work you’re looking for.

Third-Party Listings

Checking out an intermediary’s website is great, but for a less biased look, check out their reviews on third-party listings like Google. This will give you a better sense of what clients think about the intermediary.

Get Help with Your 1031 Exchange

If you are considering a 1031 exchange of your real property, don’t go it alone! Contact an experienced qualified intermediary who can help you through the ins and outs of the 1031 exchange process. There are many traps that can trip up 1031 exchangors, and an intermediary is your best defense against these. Your QI can also draft all of your required documents and answer any questions you may have. Contact us today at our office in downtown Minneapolis to learn more about the tax-saving perks of a real estate exchange.

  • 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.

© 2020 Copyright Jeffrey R. Peterson All Rights Reserved