What are the 1031 Exchange Requirements?

1031 Exchange Requirements

The 1031 exchange portion of the IRS code requires that a number of criteria be met, and that the services of a qualified intermediary (QI), also known as a facilitator or accommodator are used. The code can be confusing and difficult to understand, also, therefore it's important to use a very knowledgeable QI. We can recommend the best QIs for you to use.

How does a QI assist in meeting 1031 exchange requirements?

A QI acts as the middleman in the exchange, providing the paperwork, oversight, escrow services and expertise necessary to assure that the exchange qualifies as an exchange under Section 1031 of the Internal Revenue Code. Very importantly, the QI holds the funds and/or property in a "safe harbor" or trust account to satisfy the demands of the IRS code. Even though completing all of the 1031 exchange requirements is a complicated process, an exchange using a good QI can become a simple process and look surprisingly like a standard sale. The intermediary performs these services on a fee-for-service basis.

Can RealtyNet Advisors help me comply with 1031 exchange requirements?

RealtyNet maintains a database of over 300 qualified intermediaries from across the United States. We can assist in selecting an intermediary with a good reputation, a high bond level, a competitive fee schedule and interest on deposits, financial strength, and one with superior expertise in successfully fulfilling all of the 1031 exchange requirements.

For more information, please email us at info@realtynetadvisors.com or call us at 800-872-1031.