1031 Exchange Tips for Accountants

Many accountants and CPAs work with clients who are interested in 1031 exchanges. In this article, we are going to offer up a few 1031 exchange tips for accountants to help their clients when considering like-kind exchanges.

The Complexities of a 1031 Exchange

Most accountants and CPAs are not experts in the realm of 1031 exchanges. Like-kind exchanges, though they may seem simple, can be incredibly complex as there are a litany of rules and regulations you need to abide by. Many CPAs have a basic understanding of how 1031 exchanges work and can explain the benefits to their clients, but they can’t execute a 1031 exchange on behalf of their clients. That’s where a qualified intermediary becomes invaluable.

Partner with a Qualified Intermediary

If you are an accountant or CPA and your client is asking about doing a 1031 exchange, it’s important to refer them to a qualified intermediary who understands the ins and outs of the 1031 exchange process. We partner with many accountants and CPAs to offer 1031 exchange help to their clients as needed.

CPEC1031 in Minneapolis

At CPEC1031, our like-kind exchange professionals make it a point to give every 1031 exchange the attention it deserves. No matter what type of property you’re looking to exchange, we can advise you throughout the process so you feel comfortable and informed. Give us a call today to learn more about the like-kind exchange process and to get your exchange up and running. Our main office is located in downtown Minneapolis, but we work with clients throughout 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.

© 2018 Copyright Jeffrey R. Peterson All Rights Reserved

The Importance of Involving Your CPA in your 1031 Exchange

In a 1031 exchange, when you look at a HUD closing statement there a lot of confusing facts, figures, prorations, debits and credits, etc. These items can seem foreign and unfamiliar to many taxpayers. One of the concerns that many people have is “what if there are expenses on this closing statement that I'm not allowed to pay for with my exchange funds?”

Specifically, what about the following items:

• tax prorations

• security deposits

• rent prorations

• other lender related transaction expenses

The best course of action to take is to bring in your circle of advisers before you sign the closing statement. The way you can do that is to ask the title company to provide a preliminary closing statement and circulate it to your CPA or accountant for their review and comment. If you share the closing statement with them before closing you can adapt it and make some changes. But if you wait until April 15th of the next year to give them the completed signed closing statement there's nothing anyone can do after the transaction is closed.

• Start Your 1031 Exchange: If you have questions about involving your CPA in your 1031 exchange, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

© 2017 Copyright Jeffrey R. Peterson All Rights Reserved