Video Transcript
Today, I’m going to talk about two regulations the state of Maine has for 1031.
First, although a Qualified Intermediary like IPX1031 and 1031 industry as a whole is not regulated or has any oversight at the federal level, Maine does require that Qualified Intermediaries performing 1031 services in their state maintain a license to do business in the state, have a $250,000 bond and $100,000 E & O coverage. The good news is we at IPX1031 have well over that with $100 Million Fidelity bond coverage and $30 Million dollars E & O insurance per occurrence. Actually, the highest in the country.
Second, Section 1031 is a federal tax code which you can complete and defer the capital gains tax with property anywhere in the U.S. However, in Maine, you should know that if you are not a resident of the state and are selling investment property in Maine, the state will withhold a certain percentage at closing to be paid towards your state capital gains tax due that year. The good news is that you can apply for the non resident withholding exemption, but it must be submitted and approved prior to the sale closing date. Therefore, I suggest starting this process as soon as you’ve signed a sales agreement.
Understanding the Maine 1031 Exchange Process
If you have any questions about the Maine 1031 Exchange process or any other 1031 Exchange topics, please visit our Maine IPX1031 web page at www.ipx1031.com/maine. We’re happy to help.
Click to visit Maine 1031 Exchange page