Article on who can be a Qualified Intermediary (hint: not your attorney or real estate agent)
Gain 1031 Exchange Co. is managed by Patrick T. Harrigan. Patrick is a Certified Exchange Specialist and a member of the Federation of Exchange Accommodators reflecting the highest standard in knowledge and expertise in the exchange industry.
We work with attorneys and Title Closers in all ares of investment real estate
A locally based intermediary that has exchange expertise is a difficult combination to find. We receive referrals from title companies around Wisconsin and Minnesota due to our ability to handle every type of exchange from the simplest to the most complex.
A 1031 exchange, also known as a like-kind exchange, tax free exchange or Starker exchange is a way to defer payment of taxes on the sale of real estate. Any taxpaying individual or entity can take advantage of exchanges including businesses, partnerships, LLCs and corporations. As the name implies, the seller cannot sell the property outright. To have a valid exchange, the property being sold must be exchanged for other property through a specific process.
That is where we come in. The exchange rules require using a Qualified Intermediary to facilitate the exchange and hold the proceeds funds from the sale in an escrow account. If the seller/exchanger touches those proceeds funds, they become taxable. Our office is a Qualified Intermediary and has expertise in assisting with the exchange process including drafting the exchange paperwork and coordinating the necessary steps with the title closer.
A typical 1031 exchange is called a forward exchange where the exchanger sells their relinquished property and then acquires the replacement property. There are some steps and time frames that must be followed to complete a forward exchange. It is also possible to complete an exchange in reverse order, however, that process is more complex.