We’ve talked before about the role of the qualified intermediary in a 1031 exchange. In this article, we are going to offer three reasons why it’s important to work with a qualified intermediary on your 1031 real estate exchange.
They Will Prepare Your 1031 Documents
There are a lot of documents that you need to prepare and execute during the 1031 exchange process. For the uninitiated, this can get complicated quickly. When you hire a qualified intermediary, they will prepare all of your 1031 exchange documents so you don’t have to. That way, you’ll have everything you need when you arrive at the closing table.
They Will Insulate Your From Receiving Boot
In a 1031 exchange, the person completing the exchange cannot receive any of the sales proceeds. Instead, these proceeds need to remain separate until they are rolled over into the new replacement property. Your intermediary can insulate you from receiving these proceeds (boot) by holding the funds until you are ready to close on the replacement property.
They Will Advise You Throughout the Process
A qualified intermediary is a professional who works on 1031 exchange transactions every day. Having this type of experience by your side throughout your exchange is extremely beneficial. Your intermediary will answer all of your questions and advise you throughout the 1031 exchange process.
Start a 1031 Exchange
CPEC1031, LLC works with investors large and small to defer capital gains taxes on the sale of real property. A 1031 exchange is a great tool to keep your money working for you and compounding in a continued investment property. Contact us today to speak with one of our qualified intermediaries about your exchange. We can work with you throughout the entire process, answering your questions, preparing the necessary documents, and make sure you have all your bases covered. Our main office is in downtown Minneapolis, but we work with clients on like-kind exchanges across the country.
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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