10-31 Exchange Services. Can you recommend a financial institution that will provide the Fiduciary services?
I have a condo in Chicago that I rent out. I would like to sell it and buy a condo in Florida to rent out. I understand the terms of the 10-31 exchange, but the banks that I use (and have account with) don’t seem to know or want to provide the service. Can you make some recommendations of reliable institutions for this ? Loretta
Terry Says
Before you consider this kind of exchange, I want to make sure you clearly understand all the tax implications, including the possibility of having a taxable gain if your new property has a smaller mortgage than your existing property! The devil is truly in the details of these exchanges, including timing and dealing with things like depreciation of an investment property.
Please read this terrific explanation of those issues from Investopedia.com.
Now your original question brings up the most dangerous issue of these 1031 “like-kind” exchanges. The people and companies that facilitate these exchange are not registered nor regulated. They are “holding” your money during the process. And there have been plenty of frauds associated with this process!
Here’s more information about what to look for in an intermediary.
And, I’m sorry to disappoint you but I can’t make a recommendation for this service.
