The IRS has just released proposed regulations which will have a huge impact on the 1031 industry.
The good part of this ruling is that it will encourage intermediaries to hold exchange proceeds in a separate account for each client (rather than the highly risky practice of holding proceeds in a common, or commingled, account). The bad news is that you will see a lot of intermediaries go out of business because of these regulations. You will also see exchange fees will go up across the country.
But overall, the proposed change is a positive one. Funds invested by 1031 exchangers will be safer because more QIs will segregate accounts, while forcing dishonest intermediaries out of the industry.
--The Experts
Join the Conversation
Have questions about 1031 exchanges? Share your thoughts below.
Comments are closed for this article.