1031 Exchange Mistake: Qualified Intermediary Explained!

Описание: The biggest mistake you can make in a 1031 Exchange is letting the sale proceeds hit your bank account. If you touch that money for even a second, the exchange is DEAD, and the IRS will tax the entire gain. 💸

To keep it legal, you need a Qualified Intermediary (QI):

The Middleman: They hold the cash so you don't have to.
The Compliance Officer: They ensure the funds go directly into the replacement property.
The Deadline: You must send your list of potential replacement properties to your QI by Day 45!

Don't let a simple bank transfer turn a tax-free move into a massive bill. 🛑

#1031Exchange #RealEstateInvesting #TaxTips #QualifiedIntermediary #RealEstateTax

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Disclosure:
Sterling Adams Wealth Management, LLC is a financial planning firm in Verona, New Jersey specializing in HENRYs (High Earner, Not Rich Yet) with 0-3 rental properties who would like to grow their portfolio.

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