Many taxpayers who are considering a 1031 exchange wonder why they need to hire a qualified intermediary, or if they can proceed with the 1031 exchange on their own. Here, we’ll talk about some of the benefits of hiring a qualified intermediary, and how having one by your side can make or break your 1031 exchange. Our Minnesota qualified intermediaries are on hand to answer any of your questions. Give us a call today to start your Bemidji 1031 exchange – 877.373.1031.
Benefits of a Qualified Intermediary
There are many benefits of having a qualified intermediary on your 1031 exchange team. Here are a few:
- Advisor. Your qualified intermediary acts as your own personal advisor throughout the 1031 exchange – answering your questions, and making recommendations to ensure a successful exchange.
- Document Preparation. There are a lot of necessary documents involved in a 1031 exchange. Miss one and your exchange could be in jeopardy. Your qualified intermediary will prepare all of the required documents for you so you don’t have to worry about missing anything.
- Insulation. Most importantly, your qualified intermediary acts as a sort of buffer between you and the exchange funds. If you receive any of the sales proceeds after the closing of your relinquished property, the IRS will likely see that as a taxable sale. To avoid that situation, your qualified intermediary can insulate you from recognizing any taxable capital gains by keeping your exchange funds in a separate, segregated account until you are ready to purchase your replacement property.
Contact a Bemidji Qualified Intermediary
A qualified intermediary can be vital to the success of your like-kind exchange. We have seen many taxpayers whose exchanges failed for reasons that could have been easily prevented with the help of an intermediary. In order to ensure the success of your exchange, speak with a MN qualified intermediary early in the exchange process. Give us a call today to discuss your 1031 exchange options. Whether you’re exchanging real property or personal property, our Bemidji qualified intermediaries have the knowledge and experience to make sure your exchange goes off without a hitch – 877.373.1031.