A qualified intermediary is an integral part of any 1031 exchange, but many taxpayers don’t understand the true value of an excellent intermediary. In this article, we are going to discuss how a qualified intermediary can help you save money when selling real estate via a 1031 exchange.
Making Sure Your Property Qualifies
The first thing your qualified intermediary can do is help you figure out if your property even qualifies for 1031 exchange treatment, and if so, how to approach your 1031 exchange so you defer 100% of your capital gains tax burden.
Making Sure You Hit Your 1031 Deadlines
1031 exchanges revolve around strict deadlines that must be hit in order to execute a successful exchange. After you sell your relinquished property, you have 45 days to give written identification of your replacement properties, and only 180 days total to complete your like-kind exchange. Your qualified intermediary will make sure you are aware of these deadlines.
Making Sure You Have the Proper Paperwork
There is an assortment of paperwork involved in any 1031 exchange. Your qualified intermediary can make sure you have the property paperwork in order when it comes time to close on your properties.
Minnesota Qualified Intermediaries
Hiring a qualified intermediary is the best way to ensure your 1031 exchange is a success and that you defer 100% of your taxable gain. A good intermediary can answer all of your questions, guide you through the process, and make sure you have everything you need throughout the 1031 exchange period. CPEC1031, LLC has been providing qualified intermediary services to clients throughout the United States for over two decades. Put your trust in our team to bring your 1031 exchange across the finish line.
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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