Qualified intermediary 1031

Prepare documentation concerning the relinquished asset and the replacement property. At the closing, the exchange funds are wired or a check is sent to Wells Fargo. In addition, around one-third of their specialists are also lawyers.

Under Treasury Regulations section 1. QI is any person who is not the exchangor or a disqualified person.

The same regulations define a disqualified person as any person who has acted as the exchangor’s agent within a two-year period ending on the date of the transfer of the relinquished property. Qualified Intermediaries. The Internal Revenue (IRS) Code requires that the person or entity serving as (QI) cannot be someone with whom the exchanger has had a former business or family relationship prior to the transaction. What does a qualified intermediary do?

When you work with First American, you have peace of mind knowing your transaction is in the hands of an industry leader. All Major Categories Covered. The word “ qualified ” refers to the intermediary ’s relationship to the Taxpayer.

There is an old adage that states “Just because you can do something-doesn’t mean you should.

Where such an intermediary (often called an exchange facilitator) is use. They hold the proceeds from the relinquished property until they are reinvested in the exchange property. A sound exchange agreement is the best defense in the event of an IRS audit.

This person is also known as a Q. The QI is the neutral 3rd party facilitator of your exchange. They must be independent individual or organization that does not have a business or family relationship with the exchanger, prior to the transaction. Real Estate, Landlord Tenant, Estate Planning, Power of Attorney, Affidavits and More! Taxpayers are encouraged to seek the counsel of their attorney and accountant.

Exchange Downloadable Forms. The qualified intermediary function works within the procedural restrictions of the Internal Revenue Code to ensure a secure and trouble-free exchange. The IRS requires that we remain an independent third party to your exchange transaction. In that capacity, we are a qualified party that can facilitate your exchange transaction.

Over the past years, we have handled over 0exchanges, ranging from simple two-party swap exchanges to complex reverse construction exchanges. For that reason, proceeds from the sale must be transferred to a qualified intermediary , rather than the seller of the property,. Investment Services, LLC and DFPG Investments, Inc.

We’ve been assisting residents of Pierce County, Washington as well as clients all over the country for more than two decades. Equity Advantage, Inc.

They perform all due diligence, gather required documents, and guide investors throughout the exchange. Starker Services, Inc. Our goal is to work with your team to complete a hassle-free exchange. But many people don’t understand exactly what an intermediary does. Our specialty is helping you exchange your investments to meet your financial needs.

You can read all about that at. There’s no reason to pay taxes during a real estate exchange if you don’t absolutely have to. Our experience and knowledge mean that you don’t have to worry. Agents of the Taxpayer – your CPA, accountant, attorney, etc.

Employees of the Taxpayer.