People doing 1031 exchanges often ask “should I have my attorney involved in my 1031 exchange?” In this article, we are going to talk about the professionals you should have on your 1031 exchange team.
Involving Your Attorney
I always advise people that if they don't understand what they're doing, or they don't understand what they're reading, they need to assemble the whole crew of professional advisors so they have all the resources available to them.
One of those important resources is your attorney.
It’s important to have the attorney review the various purchase agreements, contracts, and exchange documentation that will be prepared part and parcel with your sale and closings of the relinquished property and replacement property.
Other Professionals to Have on Your 1031 Team
Also, it's very important to bring in your accountant or tax preparer who will eventually be reporting this transaction on form 8824 with your tax return for the year in which you sell the relinquished property.
In addition to the attorney and accountant there are other professionals that can help you navigate these waters such as a sophisticated commercial real estate broker, or financial planner.
All of these folks can provide you the full picture and depth of resources that you need to make the best decisions possible for your set of circumstances.
- 1031 Hotline: If you have questions about who should be involved in your 1031 exchange, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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