In a 1031 exchange, the intermediary is treated as qualified intermediary of the transaction if the exchange agreement contains the G(6) limitation. The G(6) limitation basically states that the taxpayer conducting the exchange can’t receive, pledge, borrow, or otherwise get the benefits of the 1031 exchange funds.
That exchange agreement is voided the moment that the G(6) limitation ceases to apply. You don’t want to have an agreement and then not follow it. That would be contrary to the requirement that you have to continue to keep a wall up that prevents the taxpayer from receiving any of the 1031 exchange funds. You must adhere to the terms of your original exchange agreement to make the exchange work.
1031 Exchange Accommodators
CPEC1031, LLC provides 1031 exchange accommodation services to clients throughout the United States. Want to learn more about saving money in capital gains taxes when selling investment real estate? Give our qualified intermediaries a call today! We have over twenty years of experience working in the like-kind exchange industry and can help you navigate the ins and outs of a 1031 exchange. Contact us today for more information about the 1031 exchange process, the benefits of section 1031, and how you can begin the process of deferring capital gains taxes on the sale of real 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.
© 2024 Copyright Jeffrey R. Peterson All Rights Reserved