A qualified intermediary wears many hats in a 1031 exchange, but many people aren’t fully aware of what a qualified intermediary even does. In this article, we are going to discuss two roles that a qualified intermediary fills during the course of a 1031 exchange.
A Trusted Advisor
First and foremost, a qualified intermediary is a trusted advisor to the taxpayer conducting the 1031 exchange. You can (and should) go to them with any questions you have during the like-kind exchange process. They can also advise you on identifying appropriate replacement property.
A Neutral Third Party
A qualified intermediary also has to act as a neutral third party. In a 1031 exchange, it’s important that the taxpayer conducting the exchange does not acquire any of the net proceeds from the sale of the relinquished property. The qualified intermediary can hold onto these proceeds as a neutral third party until it comes time to redeploy these assets into the replacement property.
Minnesota Qualified Intermediaries
CPEC1031 employs skilled and experience qualified intermediaries who can help facilitate your next real estate exchange. We have been providing like-kind exchange services to our clients for over two decades. We put that level of experience to work on each transaction we facilitate. Contact us today to learn more about the 1031 exchange process and how we can help you through your next 1031 exchange. You can find us at our primary office located in downtown Minneapolis or at one of our satellite offices located around the United States.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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