Under the IRS guidelines, your exchange is not valid if you are in constructive receipt of the proceeds. That is, if you receive or have control over the funds. To avoid this pitfall, you need a Qualified Intermediary to handle the funds.

Your choice of a Qualified Intermediary is crucial to the success of your exchange because:

• The rules and regulations governing property exchanges are complex. You need a §1031 expert to assess the situation and draft your documents correctly so that you gain maximum benefit from your exchange. If you make an exchange that the IRS later determines to be invalid, the costs and potential business consequences are significant.

• You need to know that your funds are secure . Your Qualified Intermediary holds your funds throughout the exchange process. So, you must choose a Qualified Intermediary you can trust to handle your money honestly and wisely.

• Your Qualified Intermediary must work closely with your attorney, your accountant and your real estate agent. There are many details to be worked out and timing is critical, so you need a Qualified Intermediary who will give you prompt, responsive service .

For more information see, Five Reasons to Call Madison.