This question comes up all the time. Most of you are aware that I am in fact an attorney. For more than 35 years, I have practiced as a dirt (real estate) lawyer, with some corporate law thrown in. So then can I give legal advice when asked on a Section 1031 transaction? ANSWER: It depends. Now, doesn't that sound like an attorney.
But it really does depend. It depends on whether I am acting as the client's attorney and not acting as the client's Qualified Intermediary(QI). IRS will allow me to act as the attorney when I am not acting as the QI. I can also act as the QI but not the attorney, but not both jobs at the same time.
There are some minor exceptions to the rule. IRS takes the position that the QI must be completely independent,; obviously if I were acting as the attorney and the QI, I could not be acting independently. I will continue to work with the client's attorney and/or financial advisor--we love giving suggestions based upon our knowledge, but the final answer, if a legal opinion is desired, must come from the client's attorney.
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