If you are planning for a 1031 Exchange, and want to reinvest the property for the tax deferment, then no worries our expert team is here at 1031sponsors.com and will help you and figure out all things at every step. Here we have a team of experts to help you in completing your 1031 exchange in the best way. So, before moving for 1031 Exchange, you should have a brief knowledge of 1031 Exchange and who are the experts in this field?
Now firstly we will make you understand 1031 Exchange in brief 1031 exchange emerged from section 1031 of the IRC (Internal Revenue Code). This is a great rule used for deferring the capital gain taxes. In the 1031 exchange process, the investors sell the property and reinvest the proceeds to buy new replacement property, and suspend all the capital gain taxes within 180 days of the sale of the property. The qualified intermediary also known as 1031 accommodator is involved in the exchange process without whose presence the exchange cannot be completed because the money received from the sale of the relinquished property is kept in the escrow account and if the investor touches the cash, then he/she is disqualified from the 1031 exchange. Prerequisite to serve as a Qualified Intermediary The investor cannot directly sell a property, buy another, and defer capital gains taxes without the involvement of QI. IRS Section 1031 of IRS specifies that neither your parents nor your child nor your sibling can be the middle person of your 1031 Exchange. It prohibits anyone regarded as your "agent" such as your attorney, broker, CPA, or real estate agent from serving as your QI unless this person has not represented you within the past two years. Overview of a Qualified Intermediary's Responsibilities in a 1031 Exchange A Qualified Intermediary plays an important role in the completion of a successful 1031 exchange. The QI sells your property on your behalf, buys the new replacement property, and then transfers the deed to you. It is the responsibility of the QI to hold the proceeds, prepare the legal documents and completes the transaction within the IRS guidelines. These experts are also known as Facilitator or Accomodator. Qualified Intermediary's duties Here is the detailed point-by-point explanation of the services performed by the 1031 Qualified Intermediary during the 1031 exchange process:
For consultation and assistance regarding 1031 exchange expert, you can call - 888-876-6005 or email us at [email protected].
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