Keep Your 1031 Exchange Safe with the Right QI

To successfully complete a #1031 exchange, you will need to avoid having actual or constructive receipt of the sale proceeds of the relinquished property during the pendency of the exchange. The way to do this is with use of a qualified intermediary. They will hold funds and title to avoid any violation of IRS rules.

However, not just anyone can function as your qualified intermediary. While you might understandably turn to your own personal accountant or attorney to fulfill this role, doing so will invalidate the exchange.

The IRS considers anyone who performs professional services for you within the previous 24 months as being “disqualified” to serve as the qualified intermediary for a 1031 exchange. In order to execute a valid exchange, the taxpayer must retain a disinterested third-party to function as the qualified intermediary, preferably one who has been thoroughly vetted and can demonstrate a proven track record of success in handling 1031 exchanges.

If you’re considering a 1031 exchange, please visit our website to learn more about the exchange process, our qualified intermediary services and how we can help you find and close on your next 1031 exchange property.