1031 exchanges can be complex transactions and taxpayers often have a whole host of questions about their exchange. Here are a handful of the most frequently asked questions we get about 1031 exchanges. If you have any additional questions about 1031 exchanges that are not answered here, don’t hesitate to give our like-kind exchange professionals a call – 877.373.1031.
Who Can Act As a Qualified Intermediary?
A qualified intermediary is a necessary player in any 1031 exchange. Your QI will act as your adviser throughout your exchange and also prepare the necessary documents for your exchange. But can anyone act as your qualified intermediary? In short, no. Who can act as your qualified intermediary is restricted by section 1031. Basically, a qualified intermediary cannot be a related party to the taxpayer completing the exchange. That means you can’t hire your relative, or your personal CPA or tax professional for your exchange. Watch the video below to learn more:
How Long Do I Have to Complete My Exchange?
Every 1031 exchange has to be completed within a total of 180 days. That clock starts ticking immediately after the sale of your relinquished property. The first 45 days of that exchange period is set aside as your “identification period” in which you need to identify in writing the replacement properties you intend to exchange into.
Can I Exchange Into Any Type of Property?
1031 exchanges need to be between like-kind property. That means your replacement property and your relinquished property both need to be like-kind. When you’re exchanging real estate, that essentially means any real estate. However, when it comes to items of personal property (aircraft, artwork, etc.) you need to be a lot more careful about this like-kind requirement.
Nebraska 1031 Exchange
More 1031 exchange questions? Our 1031 exchange qualified intermediaries have decades of experience helping taxpayers with their exchanges in Nebraska. Contact our team of qualified intermediaries today for help with your Nebraska like-kind exchange – 877.373.1031.