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.

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It is important to get a qualified intermediary early in the 1031 process to avoid costly mistakes.