1031 exchanges and qualified intermediaries go together like Peanut Butter and Jelly. But does that mean that you need to hire a qualified intermediary for your exchange? In this article, we are going to talk about whether it’s necessary to hire a qualified intermediary for your 1031 exchange of real property.
In Most Cases
The short answer to the question of whether or not you need a qualified intermediary for a 1031 exchange is – in most cases. Most 1031 exchanges follow the safe-harbor protocol that requires the use of an intermediary.
Your qualified intermediary is essential to the process because they (among other things) hold your exchange funds for you while you wait for the process to complete. This keeps you from receiving boot and recognizing any gain during the process.
In addition to that, it’s advantageous to hire an intermediary because they act as your guide through the 1031 exchange process. Like-kind exchanges can be complex and there are many common traps for the unwary. Having an intermediary by your side is the best way to ensure your exchange will be a success.
Rare Exceptions
There are a few rare 1031 exchange cases in which a qualified intermediary is not necessary, but these are very uncommon.
CPEC1031
A qualified intermediary is your best bet for completing a successful 1031 exchange transaction. At CPEC1031, our intermediaries can help you prepare your 1031 documents, answer your questions, and advise you on the appropriate replacement property. With more than twenty years of experience, we have the skills needed to ensure that your exchange completes without any issues. Contact us today at our downtown Minneapolis office to learn more about our services and set up an appointment with one of our 1031 professionals!
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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