1031 Exchange
Can anybody explain how a 1031 exchange works and how is it handled in ProSeries?
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8 Replies
09/18/06 2:18pm PDT
You must use a qualified intermediary in order to have a legit 1031 exchange. The qi holds funds until the new asset is purchased. The new property does not have to be purchased simultaneously with the sale of the old property.
If you just had a buy and sell of property without a qi you don't have a 1031 exchange.
09/18/06 3:00pm PDT
What is a qualified intermediary? My client has a rental property and is selling it and purchasing another. Thank you
09/18/06 6:36pm PDT
Naomi...are you a tax professional...all of this information is in Pub 17 taxea
09/18/06 6:42pm PDT
I didn't look it up.....thought I would get opinion from others first. I have Pub. 17, just didn't check it out yet.
09/19/06 7:12am PDT
Naomi, don't forget that the QI cannot be the same attorney that is used by the seller; it must be someone else. There are many companies that do 1031 exchanges and have all of the criteria in place for sellers to follow.
09/19/06 12:20pm PDT
A qualified intermediary is just that. Does not represent the purchaser or the seller. They are independant. There are firms that specialize in being a qi. Possibly your local cpa organization can recommend one.
09/01/09 7:16pm PDT
Latest post
You can request a copy of A Guide to 1031 Exchanges or a copy of the Section 1031 Tax Deferred Exchange Reference Manual here: http://www.exeter1031.com/RequestBrochure.aspx.
