Maine 1031 Exchange – What Are the Requirements for a 1031 Exchange in ME?

Hi. Patty Flowers with IPX1031 Exchange. Today, I’m gonna talk about two regulations the State of Maine has for 1031.

First, although a qualified intermediary like IPX and the ten thirty one industry as a whole is not regulated or has any oversight at the federal level, Maine does require that qualified intermediaries performing ten thirty one services in their state maintain a license to do business in the state, have a two hundred and fifty thousand dollars bond and one hundred thousand E and O coverage.

The good news is we at IPX have well over that with $100 Million Fidelity bond coverage and $30 million dollars E and O insurance per occurrence.

Actually, the highest in the country.

Second, section ten thirty one 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.

If you have any questions about this process or any other 1031 exchange topic, feel free to visit our website, IPX1031 dot com or contact me directly. I’m happy to help. Thank you.

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