WHY DO I NEED A QUALIFIED INTERMEDIARY?

The I.R.S. regulations have defined several "safe harbors" as tools for structuring your exchange. These "safe harbors" help establish the boundaries for safe exchanges. As long as your transaction is structured within these boundaries, it is generally presumed that your exchange will be allowed.

Using a Qualified Intermediary (QI) to hold the proceeds of your sale is one of these "safe harbors". You cannot have actual or constructive control of any of the proceeds received from the sale of your property, nor can you leave them in an escrow account. As long as you have the QI hold the proceeds from your sale, you have complied with the requirements.

The QI cannot be your attorney, accountant, real estate agent or a related party. To meet the requirements of Section 1031, the proceeds from the sale of your property are delivered directly to the QI. When you are ready to close on your replacement property, the QI then transfers these proceeds to the seller.

A successful Section 1031 exchange relies upon the proper completion of documents, a timeline strictly followed, and a taxpayer who has been informed of all the options available for his particular situation. The selection of an experienced QI can reduce the stress associated with an exchange, can streamline the process and can assure the success of your exchange.

WHY CHOOSE INDEPENDENT TRUSTEES?

NOTE: The content of this website is informational only. It does not constitute tax, legal or accounting advice. Each situation is different and you are advised to seek appropriate professional advice to see if a 1031 Exchange meets your needs.