Do I Need an Intermediary for a 1031 Exchange?
Yes. You need a qualified intermediary to complete a 1031 exchange. Without a qualified intermediary, the sale of your current property will be taxed. The intermediary is the person who will receive the income from the sale of your current property and then use that money to purchase the new property. A qualified intermediary cannot be a family member, an employer, accountant, broker, attorney, or other agent.
You can hire a professional qualified intermediary to facilitate your 1031 exchange. The qualified intermediary prepares documents and completes the sale and subsequent purchase.
It is important to get a qualified intermediary early in the 1031 process to avoid costly mistakes.
- What Is a 1031 Exchange?
- How Do I Complete a 1031 Exchange Application?
- How Do I Choose a Qualified Intermediary for a 1031 Exchange?
- What Type of Property Can I Swap in a 1031 Exchange?
- What Are Some Advantages Provided by a 1031 Exchange?
- What Is the Timeline for a 1031 Exchange Application?
- How Can I Use a 1031 Exchange to Stop Managing Property?
- How Can I Take Advantage of a 1031 Exchange?
- How Long Do I Have to Complete a 1031 Exchange?
- What Is "Like-Kind" Property in a 1031 Exchange?
- What Is the "Boot" in a 1031 exchange?
- How Do I Fully Defer the Tax on the Sale of My Property through a 1031 Exchange?
- What Is a Delayed 1031 Exchange?
- What Is a Reverse 1031 Exchange?