Realized 1031 Blog

Qualified Intermediary Fees

Posted by David Dahill on Aug 20, 2019

You have just closed on your property and are looking to execute a 1031 exchange. Per IRS regulations, you need to establish a Qualified Intermediary (QI) and record another expense to complete the transaction. Although many other fees related to the transaction are standard and well-defined, it can be frustrating to gauge the cost for the services of a Qualified Intermediary. In order to understand what amounts to an appropriate fee owed to a QI, it is important to consider the services the QI provides and the risks it encounters in helping to execute a 1031 exchange.

Who Can Be Your Qualified Intermediary?

Posted by David Dahill on Aug 15, 2019

Consider this scenario for a moment: you recently sold a property and are preparing to enter into a 1031 exchange. You have everything in place, but soon learn that it is required to establish a Qualified Intermediary (QI) to complete the exchange – per IRS regulations. Who do you turn to?

Primary Functions of a Qualified Intermediary

Posted by David Dahill on Aug 8, 2019

In previous articles, we have discussed the importance of using a Qualified Intermediary in a 1031 exchange. A Qualified Intermediary plays an integral role in creating a smooth exchange process and making sure that you meet the IRS guidelines. There are a variety of duties they are responsible for handling, ranging from preparing relevant documentation to holding thousands (or even millions) of dollars in proceeds in an insured account. In this article, we will discuss the various duties of a Qualified Intermediary so that you can ensure they are truly doing their part on your behalf.

Qualified Opportunity Funds: Deferral And Potential Forgiveness Of Capital Gains

Posted by Anthony Azar on Aug 6, 2019

In December 2017, a U.S. congressional bipartisan effort known as the Opportunity Zone Program was added into the tax reform legislation (Tax Cuts and Jobs Act of 2017). The intent of the program is to encourage individual investors and companies to invest in specific census tracts around the US in an effort to promote economic development in low income communities.

What is a Qualified Opportunity Zone?

Posted by Anthony Azar on Jul 30, 2019

Potential to Build Wealth, While Doing Good

The Tax Cuts and Jobs Act was signed into law in December 2017 amid some heated controversy. However, what quietly slipped under the radar within the Act is a new tax incentive called Qualified Opportunity Zones (QOZs).

The Concept Of “Property” Among Qualified Opportunity Funds

Posted by Anthony Azar on Jul 25, 2019

Investing in a Qualified Opportunity Zone (QOZ) program is fairly straightforward. An investor takes their realized gain from an asset sale and invests it in a Qualified Opportunity Fund (“QOF”) to defer taxes on that gain. At the same time, the investor will potentially avoid capital gains on the appreciation of the Qualified Opportunity Zone Property. Another bonus is the QOF will put their funds to work in a low-income community that might be in dire need of resources. In business parlance, this represents a “win-win-win.”

What Is A Qualified Intermediary?

Posted by David Dahill on Jul 19, 2019

When an investor approaches the 1031 exchange process, they are greeted by a variety of choices. One of the most important of these is selecting a Qualified Intermediary—also known as a 1031 Exchange Accommodator. These parties have three primary responsibilities, which are intended to ensure compliance with the IRS’s rules in a 1031 exchange. These responsibilities are:

Qualified Opportunity Zone Stock: Buying Pieces Of A Company

Posted by Anthony Azar on Jul 12, 2019

Qualified Opportunity Zone Stock, or QOZ, is one of the three designated asset types collectively called Qualified Opportunity Zone Property, in which a Qualified Opportunity Fund (“QOF”) can invest.

Cashing Out To Bring More In

Posted by Colton Hoisager on Jul 8, 2019

As a real estate investor, there could be times when you find you might need more cash than what your revenue streams can provide. Maybe you want to make improvements on your current properties. Or, perhaps, you want to buy additional assets to expand your portfolio.

Boosting Your Basis To Boost Your After-Tax Cash Flow

Posted by Drew Reynolds on Jul 2, 2019

Buying and selling real estate should be a fairly simple process. You buy it, it (hopefully) appreciates in value, then you sell it. However, there can be a capital gains tax attached to that profit, meaning your after-tax cash flow (ATCF) could take a hit.

Realized Blog