One of the first things many taxpayers want to know when considering a 1031 exchange is how much it’s going to cost. In this article, we are going to talk a little bit about how much it costs to do a 1031 exchange of real estate.
Costs of a 1031 Exchange
It’s difficult to say how much a 1031 exchange costs because there are so many unique factors that go into any given exchange that can alter the cost.
A typical forward exchange of one piece of real property for another might cost between $850 and $1500. Again, it is tough to give a generalized figure due to the level of specialization that can come with some exchanges. If you are curious about costs, the best thing to do is contact a qualified intermediary and explain your situation. With that information, the QI can give you a more concrete estimate.
Don’t Make Price Your Sole Criteria
It’s important to not put your entire focus on the cost of your 1031 exchange. Many taxpayers just want to find the cheapest qualified intermediary they can. However, this is NOT a good idea. Qualified intermediaries are typically not regulated or licensed by state authorities. As a result, you have to do your own due diligence and find a reputable intermediary for your exchange.
Get Started with a 1031 Exchange
CPEC1031 provides qualified intermediary services to taxpayers in Minnesota and all over the country. Section 1031 of the IRC allows any US taxpayer to engage in an exchange of like-kind property – and defer capital gains taxes in the process. A qualified intermediary is your guide through this process. We can draw up all your documents for the exchange, and answer all of your questions along the way. Contact our intermediaries today to learn more about the services we provide and how we can help you defer taxes on your next real estate sale.
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.
© 2020 Copyright Jeffrey R. Peterson All Rights Reserved