When you’re doing a 1031 exchange, you usually hire a qualified intermediary or other exchange facilitator to help bolster the structure of the exchange, but also to insulate you from receiving the proceeds from the disposition of your relinquished property. This entire apparatus is set up to insulate you from receiving these proceeds. If you were to receive the proceeds, either actually or constructively (for example, by having your accountant or attorney receive the funds on your behalf), you would be blowing the 1031 exchange because you have control (either directly or indirectly) of the sales proceeds. That jeopardizes the 1031 exchange because the rationale for 1031 is that you are not cashing out. If you’re able to take the cash off the table, then it is an invalid 1031 exchange and you cannot defer your capital gains taxes.
Find an Experienced 1031 Intermediary Near You
If you’re considering a 1031 exchange of investment real estate, it’s a good practice to work with a qualified intermediary throughout the process. Find an experienced 1031 intermediary near you by contacting CPEC1031, LLC. Our team of intermediaries has decades of experience facilitating like-kind exchanges across the United States. No matter where your property is located, we can help you defer your taxes under section 1031 of the Internal Revenue Code. Reach out to us today to set up your appointment with one of our 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.
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