In a 1031 exchange it’s important that you don’t receive any of the sales proceeds of your relinquished property. But how do you rest easy knowing that your money is safe? In this article, we are going to offer a few tips for ensuring that your 1031 exchange funds are safe and sound.
Don’t Co-Mingle Funds
Don’t allow your funds to be co-mingled with any other taxpayer’s funds. Set up a separate, segregated escrow account for your 1031 exchange funds. Make sure that this account is only going to be used for your funds, and make sure you know the account number. Make sure that your funds are not co-mingled with your intermediary’s operating account. Knowing that your funds are in a separate, segregated bank account with no other funds will give you piece of mind.
Another way to further secure your funds is to lock your money down in a dual-signature account. This account would require two signatures in order to release any funds. The first required signature would be the qualified intermediary’s – since they are the primary holder of the account. The second authorization signature would be your own.
St. Paul 1031 Exchange Company
Commercial Partners Exchange Company (CPEC1031) has two decades of experience working on 1031 exchanges. Our qualified intermediaries can help you through each stage of your 1031 transaction – from the sale of your relinquished property to the acquisition of your replacement property. We bring to the table the skills and experience needed to ensure your transaction is a success. Contact us today to set up an appointment with one of our intermediaries and get started with your like-kind exchange today!
- 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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