Who can help with a 1031 exchange?
By Gabriel Cooper
Who can help with a 1031 exchange?
There are five professionals that are needed:
- 1031 Qualified Intermediary. This is your point guard and your key position.
- An agent/broker who understands 1031 Exchanges. This is your guard.
- An experienced attorney.
- A CPA.
- A closing agent.
How do you find a Qualified Intermediary?
Word of mouth can be a great way to find a qualified intermediary (QI) Consider asking for a referral from:
- A CPA with 1031 exchange experience.
- A real estate attorney.
- A reputable title company.
- The other party in the 1031 exchange.
Can a bank act as a Qualified Intermediary?
So, can a bank be a qualified intermediary? The short answer to this question is “yes . . . but.” “A” bank could serve as a qualified intermediary.
Can I do a 1031 exchange myself?
To facilitate the 1031 exchange, you will want to insert special language referencing the 1031 exchange in the Purchase & Sale Agreement for your relinquished property. You can do this yourself, if you decide to draft the agreement on your own.
Can a bank act as a qualified intermediary?
Can an attorney be a qualified intermediary?
The IRS rules provide that an attorney cannot act as a qualified intermediary for a client if the attorney has performed services for the client any time during the two year period ending on the date the relinquished property closes, unless those services are limited to the client’s 1031 exchange.
What is a 1031 intermediary?
The use of a Qualified Intermediary is essential to completing a successful IRC §1031 tax deferred exchange. Investment Property Exchange Services, Inc. (IPX1031), as a professional Qualified Intermediary, performs several vital functions in an exchange and operates under the “safe harbor” set out in Treas. Reg.
Can an LLC do a 1031 exchange?
However, both an LLC or partnership (or any other entity for that matter) can do a 1031 exchange on the entity level, meaning the entire partnership relinquishes a property and the entire partnership stays intact and purchases a replacement property.
