Qualified intermediaries can be the difference between a successful and a failed 1031 exchange. But many people don’t know exactly what a qualified intermediary does or why it’s beneficial to hire one. Contact a Minnesota qualified intermediary today to get started with your like-kind exchange – 612.643.1031.
What is a Qualified Intermediary?
A qualified intermediary is an essential player in most 1031 exchange transactions in Minnesota. Qualified intermediaries are professionals who help taxpayers facilitate 1031 exchanges. They are well-versed in the tax code and the intricacies of like-kind exchanges.
Here are some of the benefits of having a qualified intermediary help you through your tax exchange:
- Questions Answered. A skilled qualified intermediary will have an in-depth knowledge of the rules and regulations surrounding 1031 exchanges. They will be able to apply those rules to your particular exchange and answer any questions you may have throughout the process.
- Insulation from Receiving Sales Proceeds. A qualified intermediary can also act as an insulator between you and the sales proceeds from your relinquished property. Remember, you need to keep all of your net proceeds completely separate until you can roll them into your replacement property. Actually receiving these funds at any point can trigger a failed exchange. Your intermediary can help avoid that.
- Peace of Mind. 1031 exchanges can be complex and scary – especially if you’ve never done one before. A qualified intermediary can put your fears to rest by preparing all of your necessary documents and advising you every step of the way.
Minnesota Qualified Intermediary Costs
Another question many people have when it comes to 1031 exchanges and qualified intermediaries is “how much does it cost to hire a qualified intermediary in Minnesota?” The cost to hire a qualified intermediary in Minnesota varies based on the transaction and the intermediary themselves. In a straight-forward 1031 exchange, a typical price range to hire an intermediary is between $850 and $1,500. Again, that can change based on the specifics of the transaction.
Qualified Intermediaries in Minnesota
If you are looking to do a like-kind exchange on your property, contact a Minnesota qualified intermediary today to discuss your situation. Our Minnesota qualified intermediaries have been helping taxpayers with their property exchanges in the Twin Cities and greater Minnesota for decades. We have the knowledge and experience needed to make sure your 1031 exchange is successful. Give us a call today talk to a Minnesota qualified intermediary – 612.643.1031.