Minimize the Distractions in a 1031 Exchange
Posted by Andy Gustafson on Mon, Jun 07, 2010
In a 1031 exchange, understanding what is important is critical. If you don't the distractions can make it difficult to understand. My son sent a short video that speaks to this point. How we respond reflects what is important to each of us given life's experiences.
1031 tax deferrals is serious business. The IRS 1031 code provides rules and regulations that are not forgiving. The rules are what I call polar, either black or white. Taking ownership of these rules is critical to completing a successful 1031 exchange. To start, find a qualified intermediary that:
- Cares about your exchange;
- Will listen, before they speak;
- Will listen for the questions you are not asking;
- Will patiently respond to the question again.
Then ask questions that are important to you. Take ownership of the like kind exchange. If you don't understand, don't be shy, ask again. As a qualified intermediary, I find it helpful when listening to remember what it was like when I first learned about 1031 exchanges. What is this gobbledygook of terms and deadlines? I have been immersed in a language of revenue procedures, terms and requirements. But it is only after responding to countless questions, research and speaking on the topic for nearly eight years that there is genuine clarity.
I have found you cannot assume the one seeking the information is listening or understands the response. It is difficult to see whether the Exchangor is nodding their head up and down as in I understand or side to side as in I don't get it, unless the speaker intuitively asks a follow up question.
Remove the distractions by following what is important to you and engage an experieced accommodator that listens following up with further qualifying questions. I hope you enjoyed the video as much as I did.