There are several parties involved in a typical 1031 exchange transaction. Today we’re going to take a closer look at one in particular – the third party administrator. In this article, we are going to discuss the role of the third party administrator in a 1031 exchange of real estate.
Third Party Administrator Defined
First thing’s first – what exactly is a third party administrator? Put simply, a third party administrator is a professional who specializes in facilitating 1031 exchange transactions. Essentially, a third party administrator is just another term for a qualified intermediary – a term you might be familiar with if you read our blog regularly. Here are a few benefits to hiring a third party administrator for your real estate exchange under IRC section 1031:
Preparing Documents. There are a lot of documents you need to prepare during a typical 1031 exchange, and a third party administrator can take care of all of them so you don’t have to.
Answering Questions. A lot of people who have never done an exchange before (and even some who have done many) have questions about their 1031 transaction. A third party administrator can answer all of your questions that arise during your exchange.
Real Estate Exchange Services
At CPEC1031, LLC, we provide real estate exchange services under section 1031 to clients in Minnesota and all over the country. A 1031 exchange is an excellent tax-deferral tool that allows you to avoid a big capital gains tax hit on the sale of real property as long as you move your net proceeds into a qualified replacement property. The added benefit is that you can keep your money working for you – compounding and building wealth over time. Contact our intermediaries today at our downtown Minneapolis office to speak in greater detail about your exchange.
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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