Qualified Intermediary

Here’s How to Choose a Qualified Intermediary for Your 1031 Exchange

Qualified Intermediary Office

Choosing the right intermediary for your like-kind exchange is essential for the success of your exchange. Making a poor decision can potentially result in a failed 1031 exchange. But a lot of people don’t know what to look for in a qualified intermediary. In this article, we’re going to explain how to choose a qualified intermediary for your 1031 exchange.

Successful Track Record

Experience goes a long way in the 1031 exchange industry. An experienced intermediary will likely be better at avoiding pitfalls than an intermediary who is green under the gills. Look for an intermediary who has been facilitating exchanges for a long time. You should also ask about your intermediary’s track record of completing successful exchanges.

Support Staff

You also want to make sure that your intermediary has a strong support staff as they will likely be interfacing with you and working on your transaction behind the scenes.

Bond Coverage & EO Insurance

Your intermediary will be holding on to your exchange funds for a portion of time during the exchange process. Because of this you should make sure that your intermediary has bond coverage and EO insurance so that you can rest assured that your money is in safe hands.

Minneapolis Qualified Intermediaries

If you’re searching for a qualified intermediary in the Minneapolis area, you’ve come to the right place. At Commercial Partners Exchange Company, we have over two decades of experience facilitating like-kind exchanges of real estate. Our qualified intermediaries can help you through each and every aspect of your 1031 exchange – from selling your relinquished property, to identifying replacement properties, and more! Contact us today at our downtown Minneapolis office or at one of our satellite offices around the 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.

 

© 2019 Copyright Jeffrey R. Peterson All Rights Reserved

 

Why a Qualified Intermediary is Essential in a 1031 Exchange

Qualified Intermediary Essential

Your qualified intermediary plays several crucial roles in a 1031 exchange. In this article, we are going to talk about why a qualified intermediary is an essential element in any 1031 exchange of real estate.

Documents

There are a lot of documents required in a 1031 exchange. Making sure you have all the required documentation can be daunting for the uninitiated. An intermediary can not only ensure that your documents are in order – they can draw them up for you!

Keeping Your Exchange Funds Separate

In a 1031 exchange, you need to keep your net proceeds separate at all times to avoid constructive receipt (which can trigger boot). The best method for doing this is to have your intermediary hold the exchange funds in a segregated bank account until you are ready to reinvest them into the replacement property.

Peace of Mind

Having a qualified intermediary by your side will also give you peace of mind. You can rest assured knowing that your exchange is in good hands and that all the necessary requirements are being met.

1031 Exchange Tax Deferral

Complete your 1031 exchange today to defer your capital gains taxes on the sale of real estate. Contact the qualified intermediaries at Commercial Partners Exchange Company for guidance through the like-kind exchange process. With more than two decades of experience, our intermediaries can answer any lingering questions you have, advise you on suitable replacement properties, and prepare your 1031 documents. Reach out to us today at our downtown Minneapolis office to set up a time to chat with a 1031 exchange professional.

  • 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

 

When to Involve a Qualified Intermediary in Your 1031 Exchange

Involve a Qualified Intermediary

Recently, a client came to us with the following question:

"We have the property to be relinquished on the market and I am in the final steps to get the property I will be buying under contract. Do I need to send anything to the qualified intermediary before I sign the purchase agreement on the new property?"

Involving a Qualified Intermediary

Good question! No, the intermediary does not need anything prior to your signing the purchase agreements. Intermediaries typically get involved once a purchase agreements is signed and the title process is getting started (prior to closing).

Once you have them, send a PDF copy of the signed purchase agreements and customer application form completed (to the extent possible) to your intermediary to get started with the 1031 exchange process. You may also want to include our sample text into your purchase agreements, and let your title-closers know that you are doing a 1031 exchange.

Exchange Your Property

Commercial Partners Exchange Company works with taxpayers large and small on the exchanging of real estate under section 1031 of the Internal Revenue Code. With twenty years of experience under our belts, we can answer all of your questions, advise you on replacement properties, and prepare all of your needed documentation throughout the course of your exchange. Reach out to us today to learn more about our 1031 exchange services and get your exchange off the ground today. Our office is located in downtown Minneapolis, but we work with clients across the 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Can My Brother or Sister Act as My Qualified Intermediary?

Qualified Intermediary Brother

It’s important to involve a qualified intermediary in your 1031 exchange. However, not just anyone can act as your intermediary. There are certain restrictions that apply. In this article, we are going to discuss whether or not your sibling can act as your qualified intermediary in a 1031 exchange.

Qualified Intermediaries

First off, let’s offer a quick reminder of what an intermediary does and why it’s important to involve one in your 1031 transaction. A qualified intermediary serves many functions in a 1031 exchange. They are your adviser throughout the exchange process. They can put together all the necessary 1031 documentation for you. They can ensure that you do everything in your power to successfully complete the 1031 exchange.

Disqualified Parties

Some parties are disqualified outright from acting as your 1031 intermediary. Anyone who is related to the taxpayer conducting the exchange by blood or business affiliation is excluded from acting as the qualified intermediary on the transaction. So your blood relatives (including your sister or brother) would not be allowed to act as your 1031 exchange intermediary. Your intermediary needs to be someone who is a neutral third party and unbeholden to you (the taxpayer).

Save Taxes with a 1031 Exchange

If you’re looking to save taxes on the sale of real estate, look no further than the 1031 exchange! A like-kind exchange can help you defer taxes and keep your hard-earned money working for you over time. At Commercial Partners Exchange Company, our intermediaries have been facilitating exchanges for taxpayers throughout Minnesota and around the country for decades. Give us a call today to learn more about 1031 exchanges, and how you can use them to save money when selling real property.

  • 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

Qualified Intermediaries vs. Real Estate Attorneys

Qualified Intermediary vs. Real Estate Attorneys

Real estate lawyers and qualified intermediaries play important roles in a 1031 exchange, but there are several important factors to consider in this regard. In this article, we are going to discuss the similarities and differences between qualified intermediaries and real estate attorneys in a 1031 exchange.

Related Parties

First and foremost, it’s important to note the related parties exclusion in a 1031 exchange. Anyone who has been an agent or employee of the taxpayer conducting the 1031 exchange is not allowed to act as the qualified intermediary for said exchange. So any attorneys who have acted on your behalf or been in your employ during the past two years cannot act as your intermediary.

Two Separate, Essential Roles

Your qualified intermediary and your real estate attorney both play separate, yet essential roles in a 1031 exchange. Your real estate attorney should act as your attorney. Your intermediary, on the other hand is supposed to act as a neutral third party in the exchange. Make sure to hire a 1031 exchange company that works exclusively in 1031 transactions.

Exchange Your Property with a 1031

Defer your capital gains taxes on the sale of real estate today with a 1031 exchange. Anyone can conduct a 1031 exchange so long as certain requirements are met. Making sure you meet these technical requirements is essential to the success of your 1031 exchange. With two decades of experience, our intermediaries have the skills needed to manage your transaction from beginning to end. Give us a call today to talk about your 1031 exchange with one of our qualified 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.

 

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved