Learn how to choose a qualified 1031 exchange facilitator to help you execute a like-kind exchange under Section 1031.

While executing a like-kind exchange under Section 1031 of the Internal Revenue Code can achieve substantial tax savings, mistakes and oversights can lead to unnecessary liability and unwanted scrutiny. As a result, when seeking to achieve tax deferral under Section 1031, it is critical to work with an experienced 1031 exchange facilitator (sometimes referred to as a 1031 qualified accommodator, 1031 agent or 1031 exchange specialist).

5 Important Considerations When Choosing a 1031 Exchange Facilitator or Intermediary

With so many companies offering 1031 exchange services, how do you choose a company to guide you through the process? Here are five important factors to consider when choosing a 1031 exchange facilitator:

1. How Long Has the 1031 Exchange Facilitator Been in Business?

Like-kind exchanges are complex, and mistakes and oversights can be incredibly costly. Additionally, different circumstances call for different approaches and implicate different requirements. As a result, it is important to choose a 1031 exchange facilitator that has decades of relevant experience and that has guided taxpayers through the 1031 exchange process in a wide range of scenarios.

2. Is the 1031 Exchange Facilitator Attorney-Owned?

Executing a like-kind exchange is a legal process that requires legal documents and carries legal risks. Preparing the necessary documents and addressing the risks involved requires an in-depth understanding of the process. This makes it extremely important to choose a 1031 exchange facilitator that is attorney-owned.

3. Does the 1031 Exchange Facilitator Have Positive Reviews and Testimonials?

Positive reviews and testimonials are generally a good sign that you will have a positive experience as well. A lack of positive reviews and testimonials may indicate that a 1031 exchange facilitator lacks experience, while a large number of negative reviews is generally a sign that you should choose another facilitator.

4. Where Will Your Funds Be Held? Is the Facilitator IRS-Compliant?

When executing a 1031 exchange, knowing where your funds will be held is extremely important. Your funds should be held in escrow, and your 1031 exchange agent should comply with the IRS’s guidelines for qualified intermediaries.

5. Can You Get Straightforward Information About Pricing, Timing and Expectations?

Transparency is extremely important when choosing a 1031 exchange agent. In addition to being able to learn where your funds will be held, you should also easily be able to obtain straightforward information about the facilitator’s pricing and the timing for executing your exchange. The facilitator should set clear and reasonable expectations, and you should feel confident that the facilitator is capable of providing professional and timely qualified intermediary services.

Contact Us to Learn More About 1031 National Services

1031 National Services is an attorney-owned 1031 exchange facilitator that has been providing like-kind exchange services to taxpayers for nearly 30 years. If you need a facilitator or qualified intermediary for a like-kind exchange, we invite you to contact us for more information. To speak with one of our attorney-owners in confidence, call or tell us how we can help online today.