Working with a qualified intermediary is perhaps the best way to ensure a successful like-kind exchange, but many taxpayers don’t have a firm grasp on the role of the intermediary. In this article, we are going to talk about how qualified intermediaries facilitate 1031 exchanges.
Acting As Your Neutral Third Party
During the course of any 1031 exchange, you need to park your sales proceeds from the relinquished property with a neutral third party who can hold those funds until you are ready to reinvest them into the replacement property. This is absolutely essential because you don’t want to constructively receive any cash proceeds, as doing so would trigger boot. A qualified intermediary acts as this neutral third party administrator – protecting you from receiving any boot during the 1031 exchange process.
Advising You Throughout the Process
A qualified intermediary also acts as your advisor throughout the 1031 exchange process – answering all questions that arise. There are a wide array of rules and regulations that govern how 1031 exchanges function, and your qualified intermediary will make sure you are well aware of all deadlines, rules, and requirements that you need to hit in order to maximize your exchange.
Find Help for Your 1031 Real Estate Exchange
Find the help you need for your next 1031 exchange of real estate by contacting the experienced professionals at CPEC1031, LLC. Our qualified intermediaries are on call to assist you with all the details of your next 1031 exchange of real estate. With more than two decades of experience in the 1031 exchange industry, we are well-equipped to handle your exchange. We are located in downtown Minneapolis. Located outside of Minnesota? No problem. We work with clients throughout the entire United States.
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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