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.
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