Many title closers run into clients who ask about 1031 exchanges. It’s important for closers to have some knowledge of the 1031 exchange process so that they can better help their clients prepare for the closing table. In this article, we’re going to talk about how title closers and qualified intermediaries can work together on 1031 exchanges.
Understand the Ultimate Goal of a 1031 Exchange
Remember that the ultimate goal of a 1031 exchange is to reinvest all of the sales proceeds from the relinquished property into the replacement property. The taxpayer should not pocket any of the net proceeds from the sale.
Pay Attention to 3 Specific Items
When it comes to 1031 exchanges, there are three specific items you want to keep an eye out for on the closing sheet – taxes, rent prorations, and security deposits. It’s important that the seller pay these items out of pocket in order to keep things clean from a 1031 perspective.
Work with a Qualified Intermediary
It’s best to consult with a qualified intermediary when dealing with a 1031 exchange to avoid any potential issues. At CPEC1031, we make the 1031 exchange process as easy as possible for you by taking care of everything. Our qualified intermediaries have been facilitating exchanges for over two decades and have the knowledge and experience to ensure the success of your exchange. Contact our team today to discuss your next 1031 exchange. You can find us at our primary office located in downtown Minneapolis, 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.
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