We’ve talked before about the importance of having a qualified intermediary by your side during a 1031 exchange. But not just anyone will be able to act as your qualified intermediary. In this article, we’ll discuss who is outright disqualified from acting as your qualified intermediary.
Disqualified Persons
Your 1031 exchange intermediary cannot be a disqualified person. They must be a neutral party who is unbeholden to the taxpayer doing the exchange. The qualified intermediary can’t be any of the following in relation to the taxpayer conducting the exchange:
Employee
Attorney
Accountant
Real Estate Broker
Accountant or CPA
If a person falls into any of these categories within two years of when you’re conducting your 1031 exchange, then they cannot act as your qualified intermediary.
So if your attorney did some estate planning for you or represented you in a speeding ticket case, they can’t also act as your 1031 exchange intermediary. They’re locked out of that opportunity for a minimum of two years.
Start Deferring Capital Gains Taxes Today!
The benefits of a 1031 exchange are numerous, but the greatest benefit is that it allows you to defer capital gains taxes on the sale of like-kind qualifying real estate. This can be a hugely tax-advantageous tool for real estate investors. It’s important to work with a 1031 exchange specialist to guide you through the stages of your like-kind exchange. CPEC1031, LLC has all the tools you need to complete a successful 1031 exchange of real estate. Let our qualified intermediaries answer all of your questions and walk you through the process.
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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