We’ve talked previously about the importance of involving a qualified intermediary early on in the 1031 exchange process and what you need to give them before starting your exchange. But what exactly does an intermediary do once your exchange has begun? In this article, we are going to explain what exactly your qualified intermediary does once the 1031 exchange process begins in earnest.
Document Preparation
Once your intermediary receives the sales and purchase agreements, and the title commitment, they go to work preparing your 1031 exchange documents. These documents will be tailor-made for your specific transaction. In order to prepare these documents, the qualified intermediary needs to figure out a number of details, including:
How you hold title to the relinquished property
The legal description of the property
Any other parties involved in the transaction that need to be given written notice
Using this information, your intermediary will draw up your unique 1031 exchange documents and have them ready for closing.
As the exchange process progresses, your intermediary can also answer any questions you may have about the process, and help you identify the replacement property or properties that you wish to exchange into.
Set up Your 1031 Exchange & Start Deferring Taxes
CPEC1031 has over two decades of experience assisting taxpayers with 1031 exchanges of real estate. If you are considering the tax saving benefits of a 1031 exchange, let our intermediaries help you through the details of the exchange process. We will prepare your 1031 exchange documents, answer all of your questions and advise you on replacement property. Contact us today at our downtown Minneapolis office, or one of our other offices throughout the United States to speak with an intermediary about setting up your exchange.
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.
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