{"id":27269,"date":"2022-03-10T19:17:10","date_gmt":"2022-03-11T00:17:10","guid":{"rendered":"https:\/\/www.affiliated1031.com\/common-1031-myths-part-3\/"},"modified":"2023-09-22T11:20:04","modified_gmt":"2023-09-22T15:20:04","slug":"common-1031-myths-part-3","status":"publish","type":"post","link":"https:\/\/www.affiliated1031.com\/es\/common-1031-myths-part-3\/","title":{"rendered":"Common 1031 Myths \u2013 Part 3"},"content":{"rendered":"<div  class=\"tatsu-h4nlrtf3uq5i65kj tatsu-section  tatsu-bg-overlay   tatsu-clearfix\" data-title=\"\"  data-headerscheme=\"background--dark\"><div class='tatsu-section-pad clearfix' data-padding='{\"d\":\"0px 0px 15px 0px\"}' data-padding-top='0px'><div class=\"tatsu-row-wrap  tatsu-wrap tatsu-row-one-col tatsu-row-has-one-cols tatsu-medium-gutter tatsu-reg-cols  tatsu-clearfix tatsu-h4nlrtf3w1fde472\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-col tatsu-column-image-none tatsu-column-effect-none  tatsu-h4nlrtf3x61u8wmp\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-module tatsu-text-block-wrap tatsu-rk3Jn6g65  justify\"><div class=\"tatsu-text-inner tatsu-align-center  clearfix\" ><style>.tatsu-rk3Jn6g65.tatsu-text-block-wrap .tatsu-text-inner{width: 100%;text-align: left;}<\/style>\n<p><\/p>\n\n\n<\/p>\n<p>I have been handling Section 1031 tax-deferred exchanges as a Qualified Intermediary for more than 30 years.\u00a0 The following are some of the typical exchange myths I hear repeated almost every day.<\/p>\n<p>\n\n\n<p><\/p>\n<\/div><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-h4nlrtf3x61u8wmp.tatsu-column{width: 100%;}.tatsu-h4nlrtf3x61u8wmp.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-h4nlrtf3x61u8wmp > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-h4nlrtf3x61u8wmp > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h4nlrtf3x61u8wmp > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-h4nlrtf3x61u8wmp > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}<\/style><\/div><\/div><\/div><\/div><div class=\"tatsu-section-background-wrap\"><div class = \"tatsu-section-background tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-section-overlay\"><\/div><style>.tatsu-h4nlrtf3uq5i65kj .tatsu-section-pad{padding: 0px 0px 15px 0px;}.tatsu-h4nlrtf3uq5i65kj > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h4nlrtf3uq5i65kj > .tatsu-top-divider{z-index: 9999;}.tatsu-h4nlrtf3uq5i65kj .tatsu-section-overlay{mix-blend-mode: normal;}<\/style><\/div><div  class=\"tatsu-h4o8sorraxbnl7za tatsu-section  tatsu-bg-overlay   tatsu-clearfix\" data-title=\"\"  data-headerscheme=\"background--dark\"><div class='tatsu-section-pad clearfix' data-padding='{\"d\":\"15px 0px 15px 0px\"}' data-padding-top='15px'><div class=\"tatsu-row-wrap  tatsu-wrap tatsu-row-one-col tatsu-row-has-one-cols tatsu-medium-gutter tatsu-reg-cols  tatsu-clearfix tatsu-h4o8sorrcd790u0e\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-col tatsu-column-image-none tatsu-column-effect-none  tatsu-h4o8sorrdhc5h628\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-module tatsu-text-block-wrap tatsu-B1i-NWgB-R9  justify\"><div class=\"tatsu-text-inner tatsu-align-center  clearfix\" ><style>.tatsu-B1i-NWgB-R9.tatsu-text-block-wrap .tatsu-text-inner{width: 100%;text-align: left;}<\/style>\n<p><strong>Myth #10:&nbsp; The terms 1031 Facilitator, 1031 Accommodator, and 1031 Qualified Intermediary refer to different roles in the transaction.<\/strong><br><strong>The Correct Answer:<\/strong>&nbsp; There are NO differences!!!&nbsp;&nbsp; I could, of course, have ended this discourse with one word\u2014Nothing, but I won\u2019t do that to you.&nbsp; They all mean the same thing. In fact, the governing organization for Qualified Intermediaries is called the Federation of Exchange Accommodators (FEA)\u2013not the Federation of Qualified Intermediaries.&nbsp; Since most of the financial world knows us as Qualified Intermediaries, maybe our governing organization should change the name to the Federation of Qualified Intermediaries. I am on the Board of Directors of the FEA, and I might just suggest that.<\/p>\n<p>So, then what is a Qualified Intermediary? In order to have a \u201csafe harbor\u201d transaction, a transaction that IRS recognizes as valid for a Section 1031 tax-deferred exchange, the taxpayer should use an independent Qualified Intermediary (QI).&nbsp;&nbsp; The QI\u2019s role in the transaction is not that of a legal or tax advisor. The QI should remain completely independent. Their job is to prepare the necessary exchange documentation, not the closing documents, only the exchange documents. The QI receives the proceeds from the sale and then disburses the proceeds when the taxpayer closes on the purchase of the replacement property.&nbsp; By accomplishing those and other tasks, the QI is able to convert the taxpayer\u2019s sale and purchase into a tax-deferred exchange. We (the QI) do a lot of work, for a small sum of money. But it\u2019s a lot of fun, especially, since our clients are happy because at closing they don\u2019t have to pay any taxes. Is this a good job or what!!<\/p>\n<p><strong>Myth #11: The Exchangor can get an extension to the 45-day rule on Identification or on the 180 day for final closing date due to complications on the transaction.<\/strong><br><strong>The Correct Answer:<\/strong>&nbsp; There are NO provisions to extend either the 45 day or the 180-day rules.&nbsp;&nbsp; The Exchangor has 45 days to identify what they might like to purchase as a Replacement Property and has 180 days to close on the Replacement Property.&nbsp; The Exchangor cannot extend either of those dates due to the 45th day or 180 days ending on a Saturday, Sunday a holiday. Affiliated 1031, LLC always suggests that the delivery of the Identification Statement or the final Replacement Property closing occur no later than the Friday before either of these important timelines expire.&nbsp; The only exception is when the President of the United States issues a Presidential Order extending these time deadlines. These Presidential Orders are normally given when there is a natural disaster, such as a hurricane or a major flood, etc.<\/p>\n<p><strong>Myth #12:&nbsp; The exchangor can only purchase the other person\u2019s property.<\/strong><br><strong>The Correct Answer:<\/strong>&nbsp; When Tax-Deferred Exchanges first began, the taxpayer was forced to purchase the Replacement Property from the person he was selling his Relinquished Property to.&nbsp; That changed in the 1970s when Delayed exchanges were allowed. In a Delayed Exchange, the Exchangor generally sells its Relinquished Property to its buyer and then purchases its Replacement Property from a completely different third party.<\/p>\n<p>Affiliated 1031, LLC always recommends that the taxpayer should consult their tax and\/or legal counsel on all matters dealing with the Internal Revenue Service.<\/p>\n<p>I personally look forward to working with you on your next Section 1031 exchange.&nbsp; To answer any of your questions or to open a Section 1031 transaction, please contact Stephen A. Wayner, Esq. CES at our toll-free telephone number: 877 &#8211; (USE) 873-1031 or at <a href=\"mailto:info@affiliated1031.com\">info@affiliated1031.com<\/a>.<\/p>\n<\/div><\/div><div class=\"tatsu-row-wrap  tatsu-row-has-one-half tatsu-row-has-two-cols tatsu-medium-gutter tatsu-reg-cols tatsu-inner-row-wrap  tatsu-clearfix tatsu-B1eKtySZR9\" ><div  class=\"tatsu-row \" ><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-half tatsu-column-image- tatsu-column-effect-  tatsu-SJqKJHbC5\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-single-image tatsu-module align-center tatsu-image-lazyload tatsu-ryi-xqkBb0c  \" ><div class=\"tatsu-single-image-inner \" style=\"width : 271px;\" ><div class = \"tatsu-single-image-padding-wrap\" style = \"padding-bottom : 145.0184501845%;\" ><\/div><img class = \"tatsu-gradient-border\" alt = \"\" title = \"imagen-3\" data-src = \"https:\/\/www.affiliated1031.com\/wp-content\/uploads\/2018\/08\/imagen-3.png\" src =\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\"  \/><\/div><style>.tatsu-ryi-xqkBb0c .tatsu-single-image-inner{border-style: solid;max-width: 100%;}.tatsu-ryi-xqkBb0c.tatsu-single-image{transform: translate3d(0px,0px, 0);}<\/style><\/div><div  class=\"tatsu-animated-link tatsu-animated-link-style4  tatsu-rJhAyHWCq tatsu-module tatsu-animated-link-align-center  \"><a class = \"tatsu-animated-link-inner \" href = \"\/common-1031-myths-part-1\/\"   aria-label = \"Common 1031 Myths \u2013 Part 1\"><span class = \"tatsu-animated-link-text\"  >Common 1031 Myths \u2013 Part 1<\/span><span class = \"tatsu-animated-link-arrow\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" width=\"25px\" height=\"15px\" viewBox=\"0 0 30 18\" enable-background=\"new 0 0 30 18\" xml:space=\"preserve\">\n\t\t\t<path class=\"tatsu-svg-arrow-head\" d=\"M20.305,16.212c-0.407,0.409-0.407,1.071,0,1.479s1.068,0.408,1.476,0l7.914-7.952c0.408-0.409,0.408-1.071,0-1.481\n\t\t\t\tl-7.914-7.952c-0.407-0.409-1.068-0.409-1.476,0s-0.407,1.071,0,1.48l7.185,7.221L20.305,16.212z\"><\/path>\n\t\t\t<path class=\"tatsu-svg-arrow-bar\" fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M1,8h28.001c0.551,0,1,0.448,1,1c0,0.553-0.449,1-1,1H1c-0.553,0-1-0.447-1-1\n\t\t\t\tC0,8.448,0.447,8,1,8z\"><\/path>\n\t\t\t<\/svg><\/span><\/a><style>.tatsu-rJhAyHWCq .tatsu-animated-link-inner{color: rgba(27,150,211,1) ;}.tatsu-rJhAyHWCq .tatsu-animated-link-inner:hover{color: rgba(49,50,51,1) ;}.tatsu-rJhAyHWCq .tatsu-animated-link-inner:hover .tatsu-animated-link-arrow{color: rgba(27,150,211,1) ;}.tatsu-rJhAyHWCq.tatsu-module{margin: 0px 0px 40px 0px;}<\/style><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-SJqKJHbC5.tatsu-column{width: 50%;}.tatsu-SJqKJHbC5.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-SJqKJHbC5 > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-SJqKJHbC5 > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-SJqKJHbC5 > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-SJqKJHbC5 > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}@media only screen and (max-width:1377px) {.tatsu-row > .tatsu-SJqKJHbC5.tatsu-column{width: 50%;}}@media only screen and (min-width:768px) and (max-width: 1024px) {.tatsu-row > .tatsu-SJqKJHbC5.tatsu-column{width: 50%;}}@media only screen and (max-width: 767px) {.tatsu-row > .tatsu-SJqKJHbC5.tatsu-column{width: 100%;}}<\/style><\/div><div  class=\"tatsu-column  tatsu-bg-overlay tatsu-one-half tatsu-column-image- tatsu-column-effect-  tatsu-Byx9tyHbAc\"  data-parallax-speed=\"0\" style=\"\"><div class=\"tatsu-column-inner \" ><div class=\"tatsu-column-pad-wrap\"><div class=\"tatsu-column-pad\" ><div  class=\"tatsu-single-image tatsu-module align-center tatsu-image-lazyload tatsu-S1qKjkHWC5  \" ><div class=\"tatsu-single-image-inner \" style=\"width : 271px;\" ><div class = \"tatsu-single-image-padding-wrap\" style = \"padding-bottom : 145.0184501845%;\" ><\/div><img class = \"tatsu-gradient-border\" alt = \"\" title = \"imagen-2\" data-src = \"https:\/\/www.affiliated1031.com\/wp-content\/uploads\/2018\/08\/imagen-2.png\" src =\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\"  \/><\/div><style>.tatsu-S1qKjkHWC5 .tatsu-single-image-inner{border-style: solid;max-width: 100%;}.tatsu-S1qKjkHWC5.tatsu-single-image{transform: translate3d(0px,0px, 0);}<\/style><\/div><div  class=\"tatsu-animated-link tatsu-animated-link-style4  tatsu-ryyggB-C5 tatsu-module tatsu-animated-link-align-center  \"><a class = \"tatsu-animated-link-inner \" href = \"\/common-1031-myths-part-2\/\"   aria-label = \"Common 1031 Myths \u2013 Part 2\"><span class = \"tatsu-animated-link-text\"  >Common 1031 Myths \u2013 Part 2<\/span><span class = \"tatsu-animated-link-arrow\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" x=\"0px\" y=\"0px\" width=\"25px\" height=\"15px\" viewBox=\"0 0 30 18\" enable-background=\"new 0 0 30 18\" xml:space=\"preserve\">\n\t\t\t<path class=\"tatsu-svg-arrow-head\" d=\"M20.305,16.212c-0.407,0.409-0.407,1.071,0,1.479s1.068,0.408,1.476,0l7.914-7.952c0.408-0.409,0.408-1.071,0-1.481\n\t\t\t\tl-7.914-7.952c-0.407-0.409-1.068-0.409-1.476,0s-0.407,1.071,0,1.48l7.185,7.221L20.305,16.212z\"><\/path>\n\t\t\t<path class=\"tatsu-svg-arrow-bar\" fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M1,8h28.001c0.551,0,1,0.448,1,1c0,0.553-0.449,1-1,1H1c-0.553,0-1-0.447-1-1\n\t\t\t\tC0,8.448,0.447,8,1,8z\"><\/path>\n\t\t\t<\/svg><\/span><\/a><style>.tatsu-ryyggB-C5 .tatsu-animated-link-inner{color: rgba(27,150,211,1) ;}.tatsu-ryyggB-C5 .tatsu-animated-link-inner:hover{color: rgba(49,50,51,1) ;}.tatsu-ryyggB-C5 .tatsu-animated-link-inner:hover .tatsu-animated-link-arrow{color: rgba(27,150,211,1) ;}.tatsu-ryyggB-C5.tatsu-module{margin: 0px 0px 40px 0px;}<\/style><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-Byx9tyHbAc.tatsu-column{width: 50%;}.tatsu-Byx9tyHbAc.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-Byx9tyHbAc > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-Byx9tyHbAc > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-Byx9tyHbAc > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-Byx9tyHbAc > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}@media only screen and (max-width:1377px) {.tatsu-row > .tatsu-Byx9tyHbAc.tatsu-column{width: 50%;}}@media only screen and (min-width:768px) and (max-width: 1024px) {.tatsu-row > .tatsu-Byx9tyHbAc.tatsu-column{width: 50%;}}@media only screen and (max-width: 767px) {.tatsu-row > .tatsu-Byx9tyHbAc.tatsu-column{width: 100%;}}<\/style><\/div><\/div><\/div><\/div><\/div><div class = \"tatsu-column-bg-image-wrap\"><div class = \"tatsu-column-bg-image tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-column-overlay tatsu-animate-none\" ><\/div><\/div><style>.tatsu-row > .tatsu-h4o8sorrdhc5h628.tatsu-column{width: 100%;}.tatsu-h4o8sorrdhc5h628.tatsu-column > .tatsu-column-inner > .tatsu-column-overlay{mix-blend-mode: normal;}.tatsu-h4o8sorrdhc5h628 > .tatsu-column-inner > .tatsu-top-divider{z-index: 9999;}.tatsu-h4o8sorrdhc5h628 > .tatsu-column-inner > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h4o8sorrdhc5h628 > .tatsu-column-inner > .tatsu-left-divider{z-index: 9999;}.tatsu-h4o8sorrdhc5h628 > .tatsu-column-inner > .tatsu-right-divider{z-index: 9999;}<\/style><\/div><\/div><\/div><\/div><div class=\"tatsu-section-background-wrap\"><div class = \"tatsu-section-background tatsu-bg-lazyload\" data-src = \"\"><\/div><\/div><div class=\"tatsu-overlay tatsu-section-overlay\"><\/div><style>.tatsu-h4o8sorraxbnl7za .tatsu-section-pad{padding: 15px 0px 15px 0px;}.tatsu-h4o8sorraxbnl7za > .tatsu-bottom-divider{z-index: 9999;}.tatsu-h4o8sorraxbnl7za > .tatsu-top-divider{z-index: 9999;}.tatsu-h4o8sorraxbnl7za .tatsu-section-overlay{mix-blend-mode: normal;}<\/style><\/div>","protected":false},"excerpt":{"rendered":"<p>I have been handling Section 1031 tax-deferred exchanges as a Qualified Intermediary for more than 30 years.  The following are some of the typical exchange myths I hear repeated almost every day.<\/p>\n<div><a href=\"https:\/\/www.affiliated1031.com\/es\/common-1031-myths-part-3\/\" class=\"exp-read-more exp-read-more-underlined\">Read More<\/a><\/div>\n","protected":false},"author":1,"featured_media":26910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[57],"tags":[],"class_list":["post-27269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1031-exchange-basics-es"],"_links":{"self":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/comments?post=27269"}],"version-history":[{"count":1,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27269\/revisions"}],"predecessor-version":[{"id":28176,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/posts\/27269\/revisions\/28176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media\/26910"}],"wp:attachment":[{"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/media?parent=27269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/categories?post=27269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.affiliated1031.com\/es\/wp-json\/wp\/v2\/tags?post=27269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}