Qualified Intermediary 1031

[Michael Weis]

Good Morning.  Seeking some advice and feedack from those who have had to use a qualified intermediary to handle their 1031's.  

-say you have 5 deals on the year whatever that be wholesaling or flipping, do they charge you per deal or does the paperwork they are responsible for fall under a blanket price?

-is there a personal deadline you want to have the 1031's for that fiscal year complete and if so do you need that paperwork to file your taxes or is the 1031 process a complete separate thing? 

Thanks all.  Any additional feedback besides the two questions I asked is welcome as I am sure there are plenty of important things I am not even aware of.

Happy Sunday,

Mike

[Jon Holdman]

If you're wholesaling or fix and flipping you cannot use 1031 exchanges. 1031 exchanges can only be used for investment properties.  Wholesaling and fix and flipping are both considered active business, not investing.  With wholesaling or fix and flipping any income is ordinary income and subject to state and local taxes at your marginal rate as well as self employment tax (i.e., both halves of social security and medicare.)