1031 exchange QIs
Madison 1031
Madison 1031 is a qualified intermediary for Section 1031 exchanges, working nationwide from Lakewood, New Jersey. It trades as Madison 1031 and is part of the Madison family of companies.
The firm handles forward and delayed exchanges, reverse and simultaneous exchanges, construction and improvement exchanges, and personal property exchanges. It notes that while all qualified intermediaries can handle forward exchanges, the other types need greater expertise. Each client is assigned an Exchange Officer who stays with the transaction from the first call through to the conclusion of the exchange and coordinates with the client's attorney, accountant and closing agent. The firm says it accommodates client-specific needs within the IRS parameters, such as placing funds with a particular bank or expediting bank checks for a last-minute closing.
Fund security is described in detail. Exchange funds are placed in secure accounts with large FDIC-backed banks or in AAA-rated bond funds, held in segregated accounts under the client's own tax ID and never commingled with operating funds. Clients receive bank statements during the exchange period and have online access to view account funds, and the accounting department reconciles all exchange accounts daily. The company carries a $10mm fidelity bond and a $10mm errors and omissions policy, and cites the financial backing of Madison Commercial Real Estate Services.
The office is at 1125 Ocean Avenue, Lakewood, New Jersey, with a toll-free number of 800.970.1031. Fees are not published; ask for the fee schedule and confirm in writing which bank or fund will hold the exchange proceeds.
Best for
Investors and their advisors who want a qualified intermediary that documents fund segregation, bonding and E&O coverage, including for reverse, simultaneous and improvement exchanges. Fees are quoted rather than published.
What they do
- Forward and delayed 1031 exchanges
- Reverse and simultaneous exchanges
- Construction and improvement exchanges
- Personal property exchanges
- Dedicated Exchange Officer per transaction
- Segregated exchange fund accounts under the client's tax ID
- Online access to exchange account balances
Details
| Attribute | Value |
|---|---|
| Ownership | Subsidiary |
| Exchange types | Forward, Reverse, Improvement |
What stands out
- Carries a $10mm fidelity bond and a $10mm errors and omissions policy for client protection.
- Places exchange funds with large FDIC-backed banks or AAA-rated bond funds, in segregated accounts under the client's tax ID.
- Issues bank statements during the exchange period and gives clients online access to view account funds.
- Office at 1125 Ocean Avenue, Lakewood, New Jersey; toll-free 800.970.1031.
- Operates as a d/b/a of Madison Exchange, LLC within the Madison family of companies.
Common questions
- What is a Section 1031 exchange?
- Section 1031 lets a seller of business or investment real estate defer tax on the gain if the proceeds are reinvested in like-kind property as part of a qualifying exchange. Deferring federal and state capital gains taxes leaves greater net profits for reinvestment, and also allows an investor to shift an investment from one geographic region to another, trade older properties for newer ones, leverage existing equity, and diversify a portfolio.
- How are exchange funds protected?
- Funds are placed in secure accounts with large FDIC-backed banks or in AAA-rated bond funds, in segregated accounts under the client's own tax ID, and are never commingled with operating funds. Clients receive bank statements during the exchange period and have online access to balances, and the accounting department checks and reconciles all exchange accounts daily.
- Which types of exchange does Madison 1031 handle?
- Forward or delayed exchanges, reverse or simultaneous exchanges, construction or improvement exchanges, and personal property exchanges. The company notes that all qualified intermediaries can handle forward and delayed exchanges, while the other types require greater expertise.