Many people have questions about the role of a qualified intermediary. In this article, we are going to talk about what exactly a qualified intermediary does and why they are necessary in a 1031 exchange of real estate.
The 1031 Exchange Process
When you sell your relinquished property, you need an intermediary to hold the sales proceeds to insulate you from receiving the cash. Then you need to identify your replacement properties to your qualified intermediary within 45 days after the date of the relinquished property sale. Your intermediary will provide all the required forms for identification. Finally, you need to close on your replacement properties within 180 days of the sale of your old property.
The Qualified Intermediary’s Job
A qualified intermediary does not sell and real estate or investments. A qualified intermediary is a simply an administrator that facilitates the mechanics of a 1031 exchange of real estate. The qualified intermediary’s job is to prepare the necessary paperwork, make sure that your exchange is in compliance with the Treasury Regulations on the sale of your relinquished property and the purchase of your replacement property. That way you have a full paper trail for your 1031 exchange.
Start the 1031 Exchange Process
Start the 1031 exchange process today by contacting the qualified intermediaries at CPEC1031, LLC. Our team of intermediaries has been facilitating 1031 exchanges of investment property for over two decades. We have the knowledge and experience necessary to ensure your exchange is a success. Contact us today at our Minneapolis offices to learn more about our full array of services and see how we can help with your next 1031 real estate exchange.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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