A qualified intermediary or third party administrator is an essential player in an 1031 exchange transaction. But many people don’t understand exactly what an intermediary does. Learn more about the role of the qualified intermediary here and contact our New York qualified intermediaries today to set up your like-kind exchange of real property – 877.373.1031.
What Does a Qualified Intermediary Do?
A qualified intermediary (also referred to as a third party administrator) is a tax professional who specializes in facilitating 1031 exchanges of real estate.
Qualified Intermediary Benefits
There are numerous benefits to hiring a qualified intermediary for your 1031 exchange. Here are just a few:
- Questions Answered. A skilled intermediary can answer all of the questions you have about your like-kind exchange. Many taxpayers have a list of questions that come up during the exchange process. Your qualified intermediary can answer these questions as they arise and provide guidance.
- Insulation. In a 1031 exchange, you want to avoid receiving any of the sales proceeds from your relinquished property. Any proceeds received from the sale are considered taxable boot. Your qualified intermediary can help insulate you from receiving these proceeds by holding the money in a segregated bank account until you are ready to transfer it over to your replacement property.
- Avoiding Pitfalls. There are a lot of rules and regulations that govern 1031 transactions, and many unwary taxpayers fall into traps they didn’t see coming. A qualified intermediary can help you avoid these pitfalls and ensure a successful 1031 exchange.
New York 1031 Exchange Services
If you are considering selling real property and want to learn more about the benefits of a 1031 exchange, contact our New York third party administrators today. Our 1031 exchange professionals have decades of experience helping investors big and small through their like-kind exchanges. We can help you find appropriate replacement property, prepare all of your documents, and answer all of your questions along the way. Give us a call today to talk about your New York like-kind exchange – 877.373.1031.