Proposed regulations to shake 1031 industry...

The IRS has just released proposed regulations which will have a huge impact on the 1031 industry.

The good part of this ruling is that it will encourage intermediaries to hold exchange proceeds in a separate account for each client (rather than the highly risky practice of holding proceeds in a common, or commingled, account). The bad news is that you will see a lot of intermediaries go out of business because of these regulations. You will also see exchange fees will go up across the country.

But overall, the proposed change is a positive one. Funds invested by 1031 exchangers will be safer because more QIs will segregate accounts, while forcing dishonest intermediaries out of the industry.

--The Experts

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