Ginny's RI House Hunt Blog: September 2013

Qualified Intermediary? 1031 Exchange Necessity

Qualified Intermediary?  1031 Exchange Necessity

Rules, rules, rules that we must live by when the Internal Revenue Service is involved such as having a Qualified Intermediary (QI) in the 1031 exchange real estate process.  As discussed in a prior post on 1031 Exchanges, in order to make this exchange legal and sanctioned by the IRS for capital gain purposes, this Qualified Intermediary must be involved.

billboard on 1031 exchanges

We are talking here about investment real estate property and the selling of a property to purchase a 'like kind' propert(ies) of equal or greater monetary value.  This 1031 exchange process is all about deferring capital gain taxes.

Yes, it will cost you more money to have a QI involved in your property sale and purchase but a necessary part of the deal.  

A qualified intermediary is recognized by the IRS as a non-interested party in the property sale and purchase in a 1031 exchange.  The real estate broker, attorney, seller or buyer can not retain or hold the money from the sale of property...but a Qualified Intermediary can.   They should be vetted like any other vendor.  A good source of checking is your Department of Business Regulation as well as the Federation of Exchange Accommodators.

Qualified intermediaries must receive in writing the property or properties of real estate that the seller of the investment property is considering purchasing.   This is a process to start the 45 day window of opportunity for identification of these properties as well as the 180 day window to close by and this timeframe can not be extended.  Any extension will mean that you will be paying capital gains and not qualify for the 1031 exchange.

 At closing the monies for the sold investment property goes to the Qualified Intermediary and never touches the sellers hands.   All detailed documents between the sale and the purchase of new properties are the responsibility of the QI and are important IRS tax documents.  Consult your CPA to ensure you follow the right path.

Now get going on your investment property growth in real estate and choose wisely!  Looking in Rhode Island for a RI real estate agent that knows her properties and can guide you with real estate choices?  Call me at 401-529-7849 and let us discuss your preferences and RI real estate options.  So find that qualified intermediary because they are a necessity in a 1031 Exchange.

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 Ginny Lacey Gorman is a Rhode Island waterfront Real Estate Agent who works and knows the RI geographic area of homes for sale, schools, happenings and important tidbits of information well.

 
Coastal, water view, ocean front, luxury and waterfront Rhode Island real estate are my specialty.  If you are considering Buying, Selling or Relocating to Rhode Island and need a real estate Professional it would be my pleasure to help you!    When you are in need of an internet savvy RI realtor® who sells homes in this real estate marketcall Ginny today at 401.529.7849 or email at Ginny@RiHouseHunt.com. 

 

 

This blog © and its contents is original to Ginny Lacey Gorman

the RI waterfront Realtor of Choice

 

Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.

 

Looking for a knowledgeable Rhode Island Real Estate Agent?  Let me GOOGLE one for you!

            

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cell: 401.529.7849      Ginny Lacey Gorman, Realtor

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Comment balloon 0 commentsGinny Gorman • September 26 2013 04:30PM
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