One huge mistake people often make with a 1031 Exchange is the failure to hire someone independent to act as an exchange agent.
In other words, most of the people you would normally expect to help you with a standard real estate transaction can't help with a 1031 Exchange. That includes your realtor, attorney, CPA, or anyone else already involved in the process. Instead, your agent must truly be independent and qualified to act in the way set out in the IRS rules.
Here at Brazos 1031 Exchange Company, we can serve in this capacity to help you defer and potentially avoid capital gains taxes. Our qualified intermediaries will work with you through every step of the process, including:
- Entering into proper contracts with a real estate agent for the sale of the property you will relinquish.
- The creation of a sales agreement that complies with IRS guidelines when you have a buyer.
- The handling of all funds related to the transaction.
- Guidance through closing.
- Assistance finding and purchasing the replacement property within the timelines designated by the IRS.
- Finalizing the agreements for the purchase of the replacement property to defer capital gains.
- Filing all necessary documents with the government.
One final thing to keep in mind: your intermediary must be involved from the very start of the transaction. If you wait until the property is sold to try to involve an intermediary in your plans, it will be too late, and your transaction will no longer qualify for a 1031 Exchange.
If you have questions or you need the assistance of a qualified intermediary, we are here to help. Our team of attorneys and financial professionals will help you through every step of the process and ensure that your exchange is done legally and correctly. Contact us to schedule an appointment today.