videos

Video - How a Qualified Intermediary Safeguards 1031 Exchange Funds

When you’re acting as a qualified intermediary, you have a fiduciary obligation to safeguard and protect the funds that are placed in your custody. In order to safeguard the funds correctly, it’s probably a good idea not to comingle the funds with any other client’s monies or with the operating account of the intermediary. Having a separate, segregated account for each client’s monies is a good idea. Furthermore, it’s a good idea to have a qualified escrow deposit agreement signed by the bank that’s holding that deposit stating that the bank won’t release any funds without the client’s written authorization. We can build in further safety protocols by having a verbal call back arrangement where the bank calls the client to confirm via password that their signature is correct and that the movement of the funds is authorized.

  • 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.

© 2023 Copyright Jeffrey R. Peterson All Rights Reserved

Video - Can You 1031 Exchange Foreign Property?

Interestingly, foreign property cannot be 1031 exchanged for US property. The code specifically says that foreign property is not like-kind to US property. But remember, US taxpayers are taxed on their gains from wherever they’re derived, including foreign transactions. So if you’re a US taxpayer selling foreign real estate you can still do a 1031 exchange on your foreign real estate, but you can’t exchange into the US. So you would have to do a foreign property to foreign property exchange. For example, if you sold a property in the UK you could buy your replacement property in Canada or Mexico, but you could not buy the replacement property in Minnesota because the US property would not be considered like-kind to the UK property.

  • 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.

© 2023 Copyright Jeffrey R. Peterson All Rights Reserved

Defer the tax. MAXIMIZE your gain.