Identification Rules in a 1031 Exchange -
Great post on ensure compliance with the 45 day identification requirement when engaging in a 1031 exchange and how a qualified intermediary plays such an important role in ensuring the rules are followed to properly defer federal and state, if applicable, along with depreciation recapture taxes. All of those taxes combined could result in an amount as high as 30% of your profit being paid out to the governmental entities responsible for collecting such taxes. A crucial part of compliance with such rules is engaging an experienced qualified intermediary company which is either owned by a licensed CPA or licensed Tax Attorney.
