A lot of investors who are considering a 1031 exchange wonder whether or not they need to hire a qualified intermediary. Many think that they can save some money if they can avoid hiring a QI. But having a qualified intermediary on your team can help ensure your exchange goes smoothly, and ultimately save you a lot of money in the process. If you are thinking about taking advantage of the tax-saving benefits of a 1031 exchange, give our Boston qualified intermediaries a call today to discuss your options 877.373.1031.
What a Qualified Intermediary Does
Here are some of the benefits of having a qualified intermediary by your side throughout your 1031 exchange:
- Documents. There are a lot of necessary documents that you need to prepare in a 1031 exchange. A qualified intermediary can compile all of your necessary documents for you and bring them to the closing table.
- Strategy. Not all property can be exchanged with a 1031 transaction. A qualified intermediary can advise you on which properties will and won’t work for a 1031 exchange, and help you devise a strategy for a successful like-kind exchange.
- Insulation. A qualified intermediary can also help insulate you from receiving any net proceeds on the sale of your relinquished property. You want to stay away from these net proceeds as much as possible in order to ensure a successful 1031 exchange. A qualified intermediary can hold these funds for you in a separate, segregated bank account until you are ready to move it into your replacement property.
Who Can Act as a Qualified Intermediary
Not everyone can act as your qualified intermediary. The IRS does have some restrictions in place as to who can and cannot fill the role of QI. Watch the video below to learn more about who is and is not able to act as an intermediary.
Boston Qualified Intermediaries
Our 1031 exchange intermediaries have been facilitating like-kind exchanges in the Boston area for decades. We have the skills and expertise to help you with your exchange – no matter how complicated. Pick up the phone and give us a call today to get your exchange in motion 877.373.1031.