The question of how to pay certain fees in a 1031 exchange is a common one and can get a little complicated. In this article, we are going to talk about how to handle legal fees and reimbursements in a 1031 exchange transaction.
Related Legal Fees
In general, you are allowed to pay legal fees directly related to your 1031 transaction out of your net proceeds. Any unrelated legal expenses may not be paid from your sales proceeds.
The treasury regulations state that you can pay ordinary, standard, customary transactional expenses out of the exchange funds. Any legal fees directly related to your exchange would qualify under this definition.
Starting a Like-Kind Exchange
Start your like-kind exchange today by contacting Commercial Partners. Our qualified intermediaries have more than twenty years of experience working on 1031 exchanges of all shapes and sizes and in all business sectors. Reach out to our qualified intermediaries right now to learn more about our services and how we can help you save money with a 1031 exchange. Our primary office can be found in downtown Minneapolis, but we work with clients throughout the state of Minnesota and the United States.