Who can be a qualified intermediary for 1031 exchange?

Who can be a qualified intermediary for 1031 exchange?

A Qualified Intermediary, also known as a 1031 exchange accommodator, is an independent person, company, or entity that enters into a written agreement with the exchanger to facilitate the transfer of proceeds.

Does New Jersey recognize 1031 exchanges?

In a New Jersey 1031 exchange transaction, the Internal Revenue Service allows you to postpone paying tax on the gain you realize from the sale of business or investment property, if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange.

Can an attorney be a qualified intermediary for 1031 exchange?

Attorney’s can act as 1031 qualified intermediary. Just don’t use your attorney. Treasury covers this in Reg. 1.1031(k)-1(k)(2).

How do you choose a qualified intermediary?

5 Factors to Consider When Selecting a 1031 Qualified…

1. Real estate experience. Does the QI have the necessary experience and expertise required to handle a 1031 real estate exchange?
2. Compliance examinations.
3. Transactional transparency.
4. Funds security.
5. Independent QI status.

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:

1. A CPA with 1031 exchange experience.
2. A real estate attorney.
3. A reputable title company.
4. The other party in the 1031 exchange.

Can you transfer 1031 to another state?

Section 1031 is a federal tax code, so it is recognized in all states, so you can exchange from state to state.

Can a friend be a qualified intermediary?

According to the IRS, a Qualified Intermediary cannot be a family member, employee, financial connection, or agent of the taxpayer.

Can my attorney be my 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.

How does a Qualified Intermediary faciliate a 1031 exchange?

A qualified intermediary will serve in numerous capacities during a 1031 exchange, including: Coordinating with the seller and any advisor on the structure of the 1031 exchange Preparing documentation concerning the relinquished asset and the replacement property Providing instructions and the appropriate documents to the escrow or title company concerning the exchange

How do I become a Qualified Intermediary?

1. Must have earned a high school diploma or GED. 2. Must have a minimum of three (3) years out of the past seven (7) years of full-time equivalent work experience at a Qualified Intermediary Company and is currently working for a Qualified Intermediary Company in which you are directly involved with facilitating exchanges.

Who handles 1031 exchange?

First American Exchange Company is the nation’s top qualified intermediary whose exclusive business is handling 1031 exchanges. First American Exchange offers solid financial strength, experience and nationwide service, and handles exchanges in all 50 states.

How much does a 1031 exchange cost?

For each 1031 Exchange transaction, the average Qualified Intermediary charges an administrative fee ranging from $750.00 to $1,000.00; additional 1031 Exchange transaction typically carry additional fees ranging from $200.00 to $400.00 each.