1031 Exchange Agreement With Qualified Intermediary In Houston
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The IRS 1031 exchange rules allow Texas real estate investors to defer capital gains tax when they reinvest the proceeds from a property sale into a like-kind property. To utilize this tax strategy in the current tax year, the properties involved must be held for productive use in a trade, business, or investment.
As the nation's largest Qualified Intermediary, IPX1031 provides industry leading exchange services including guidance, expertise and security for 1031 Tax Deferred Exchanges.
Get Referrals from Trusted Sources Your attorney, tax advisor, and realtor should be in a good position to make a recommendation as well because they will be familiar with the specifics of your property transaction, and can ideally recommend a QI who has worked on a similar type of exchange in the past.
How To Find a Qualified Intermediary for a 1031 Exchange Asking your local escrow officer for recommendations. Speaking to fellow investors in your network for references. Using national directories for QIs registered with regulatory groups, such as the Federation of Exchange Accommodators.
In a three or four party exchange, including the Taxpayer, Buyer of the old property and Seller of the replacement property, then yes, a Qualified Intermediary is required. The g(6) constructive receipt limitations of the 1031 code prohibit the taxpayer from touching the exchange funds or the net equity from the sale.
Employing a bank-owned qualified intermediary for a 1031 exchange can greatly enhance your financial management. The bank holds the proceeds from the sale of your property and ensures they are correctly reinvested into a replacement property.