Best 1031 Exchange Companies in Massachusetts: How to Compare Them in 2026
Massachusetts is where one of the best-known qualified intermediary losses happened, and we still did not find a Massachusetts law that licenses or sets minimum protections for the companies that hold exchange money. The comparison is up to you. Here are the firms that say they have a Massachusetts office, what their sites say, the questions that separate them, and the Massachusetts rules that follow an exchange.
On this page
The short answer
The best 1031 exchange company for a Massachusetts sale is one that shows you in writing how your money is held and who can move it, carries bond and errors-and-omissions coverage you can see on paper, and gives you a named person through day 180. Where it is located matters less: exchanges run by wire, e-signature and phone.
Massachusetts shows why that written proof matters. In Cahaly v. Benistar Property Exchange Trust Co., investors sent their sale proceeds to a company that "advertised itself as a qualified intermediary"; while holding the funds it "engaged in high-risk options trading, eventually losing approximately nine million dollars" of them (Mass. Appeals Court, 2007). States such as Virginia, Oregon and California now set minimum protections by statute. We did not find a Massachusetts statute that does, and federal law does not license qualified intermediaries either.
Massachusetts 1031 exchange companies: what their sites say
These firms state on their own websites that they have a Massachusetts headquarters or office. This is not a ranking. Each entry summarizes the firm's own site as read on October 19, 2026; "not stated" means we did not find it there, not that the firm lacks it. We list only firms whose own sites give a Massachusetts address. Confirm everything in writing with the firm.
| Firm | Massachusetts location (as stated) | Funds (as stated) | Bond / E&O (as stated) | CES on staff (as stated) |
|---|---|---|---|---|
| Exchange Authority | Worcester; a wholly owned subsidiary of Fidelity Bank | Escrow funds covered through a combination of FDIC and DIF insurance | Not stated | Not stated |
| Like-Kind Exchange Intermediary Corp. | Boston; independent | Segregated accounts for each client; dual signatures on request | Not stated | Not stated |
| Legal 1031 Exchange Services | Boston office; a division of Kensington Vanguard | Segregated money market escrow accounts in the client's name and taxpayer ID | $50 million fidelity bond; $100 million E&O | Yes |
| CPEC1031 | Boston office; headquartered in Minneapolis | Segregated bank escrow accounts | $1 million fidelity bond; E&O of $1 million per occurrence, $3 million aggregate | Not stated |
| IPX1031 | Boston office; parent Fidelity National Financial | Not stated on the pages read | $100 million fidelity bond; $30 million E&O | Yes |
| Asset Preservation, Inc. | Boston office; headquartered in Roseville, California; a Stewart subsidiary | Not commingled with operating accounts | Fidelity bond and E&O stated; amounts not stated | Yes |
Leah Badach, CES (the author of this page) works with Massachusetts sellers remotely from Brooklyn, New York. She is a Certified Exchange Specialist with 11+ years of 1031 exchange experience, and the qualified intermediary she works with confirms in writing, before you sign, how your funds are held. Ask her the same questions as everyone else on this list.
How to choose when the state sets no minimum
| Check | What good looks like | Why |
|---|---|---|
| Where the money sits | An account for your exchange alone, or a qualified escrow or trust account | In Cahaly, the money was in the intermediary's hands and was traded away |
| Who can move it | Withdrawals need your written approval, or two signatures | Fraud and errors usually start with one person able to move money |
| Bond and E&O | Certificates you can read, in amounts that make sense for your exchange | A website sentence is not coverage; the certificate is |
| Who you deal with | One named person, with a backup | The 45-day identification and the closing wires are where mistakes happen |
| Sales of $1 million or more | Has worked with closing attorneys on Form NRW and the Transferor's Certification | Since November 1, 2025, they are required on every Massachusetts sale at that price |
| The agreement | Sent to your attorney before closing | It controls when funds can be released and who earns interest |
Questions to ask any Massachusetts intermediary
- Where will my funds sit, in whose name, and at which bank?
- Does a withdrawal need my written approval?
- Can I see the fidelity bond and E&O certificates, and do they cover this exchange?
- Who earns the interest on my funds, and how is it reported?
- How do I deliver my 45-day identification, and how do you confirm receipt?
- If I buy outside Massachusetts, how will the deferred Massachusetts gain be reported later?
- Who is my day-to-day contact, and what is their training or certification?
The Massachusetts rules that come with an exchange
- Rates. Massachusetts taxes long-term capital gains at 5% and short-term gains at 8.5%. For 2026, a 4% surtax applies to income over $1,107,750 (Massachusetts DOR tax rates). Since 2022, Massachusetts applies like-kind exchange treatment only to real property (TIR 23-5).
- Buying outside Massachusetts: the gain stays Massachusetts income. "Massachusetts does not tax gain from the sale of real property that is deferred under the like-kind exchange provisions of Code section 1031. However, when the taxpayer subsequently disposes of the property acquired in such an exchange, the amount of the gain that reflects appreciation of Massachusetts real estate is Massachusetts source income" (830 CMR 62.5A.1).
- Sales of $1 million or more: Form NRW. "Starting November 1, 2025, a withholding agent is required to file a Form NRW for every real estate transaction when the gross sales price is $1,000,000 or more," and each seller gives the withholding agent a Transferor's Certification on or before closing. For a nonresident seller, withholding is generally 4% of the gross price (Massachusetts DOR). Withholding is not generally required on gain deferred under §1031; to avoid it, the seller acknowledges the deferred gain on the certification and consents to Massachusetts jurisdiction to collect the tax when the gain is realized (830 CMR 62B.2.4). Any recognized gain, such as cash boot, is still subject to withholding.
- Deeds excise. $2.28 per $500 of the sales price, less any mortgage assumed (Massachusetts DOR tax rates); Barnstable County charges $6.48 per $1,000 (Barnstable County Registry of Deeds). The DOR treats exchanges of real property as subject to the excise (Directive 89-14).
- Wherever you buy, the federal clocks are the same: 45 days to identify in writing, and the replacement must be received by the earlier of day 180 or your tax return due date, including extensions (Treas. Reg. §1.1031(k)-1). See the full timeline.
Frequently asked questions
Is a 1031 exchange company regulated in Massachusetts?
We did not find a Massachusetts statute that licenses or regulates qualified intermediaries, and there is no federal license. States such as Virginia and Oregon set minimum protections by law. Ask any intermediary for its bond and E&O certificates and for the account terms in writing.
Does Massachusetts have a clawback on 1031 exchanges into another state?
Yes, in effect. Massachusetts does not tax the deferred gain at the time of the exchange, but when you later sell the out-of-state replacement property, the part of the gain that reflects appreciation of the Massachusetts real estate is Massachusetts-source income (830 CMR 62.5A.1).
Is tax withheld when a nonresident sells Massachusetts property in a 1031 exchange?
For closings on or after November 1, 2025 with a gross price of $1 million or more, the withholding agent files Form NRW and the seller gives a Transferor's Certification. Withholding is not generally required on gain deferred under §1031 if the seller acknowledges the deferred gain on the certification; recognized gain is still withheld on.
Do I pay the Massachusetts deeds excise on a 1031 exchange?
Yes. The DOR treats exchanges of real property as subject to the deeds excise: $2.28 per $500, or $6.48 per $1,000 in Barnstable County.
Which 1031 exchange companies have offices in Massachusetts?
On their own websites, Exchange Authority (Worcester) and Like-Kind Exchange Intermediary Corp. (Boston) are based in Massachusetts, and Legal 1031, CPEC1031, IPX1031 and Asset Preservation list Boston offices. Confirm current details with each firm.
Sources
- Massachusetts DOR: tax rates, withholding on real estate sales by nonresidents, TIR 23-5, Directive 89-14; regulations 830 CMR 62.5A.1 and 830 CMR 62B.2.4.
- Cahaly v. Benistar Property Exchange Trust Co., 68 Mass. App. Ct. 668 (2007).
- 26 U.S.C. §1031 and Treas. Reg. §1.1031(k)-1.
- Firm details: each firm's own website, linked in the table, read October 19, 2026.
Educational information, not tax or legal advice. Firm details are as stated on each firm's website and may change; confirm them in writing.
Selling Massachusetts property?
Tell Leah where the property is, when you expect to close, and where you might buy. She works with investors in all 50 states, including Massachusetts.
Talk to Leah