1031 Intermediary

Asset Preservation, Inc. This qualified intermediary (QI) is allowed to sell the taxpayer’s property, collect the funds from that sale, and then use those funds to acquire a replacement property for the taxpayer. We provide expert advice and innovative solutions.

We do this here at Equity Advantage and we’re just paid a fee to step into the middle of a sale and purchase and turn it into an exchange. They have a proven ability to tackle the easiest and most complex exchanges, are financially stable, and operate independent of a title or insurance company. The word “qualified” refers to the intermediary ’s relationship to the Taxpayer.

IRS code that stipulates the rule) allow you to defer the capital gains tax (which is often nearly ) you from real property sales when you reinvest all the proceeds into like-kind. Exchange Downloadable Forms. You’ll need to use a qualified intermediary (QI) to set up and make the exchange for you. As you might imagine. Providing Leadership.

Solutions is a qualified intermediary for like-kind exchanges, handling all types and sizes of transactions throughout the United States. When an owner of investment real property (“Taxpayer”) sells the property, the sale often creates an obligation for payment of capital gains taxes. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

ADE has the edge with years of experience.

But does that mean that you need to hire a qualified intermediary for your exchange? The following definitions apply to the terms and references below: Relinquished Property – This is the property you will sell to start the exchange (it is sometimes referred to as the “first leg” property). Your Relinquished Property can consist of more than one property. The use of a QI, as an independent party to facilitate a tax-deferred exchange, is a safe harbor established by the Treasury Regulations. The last step in a forward exchange is to actually purchase the replacement property.

This must be done within 1days of the exchange beginning. In a forward exchange, it begins when you sell your old property. ESI) provides consulting services and documentation to real estate investors, their accountants and tax attorneys.

However in order to do so, the IRS requires you to use a qualified intermediary. Since an intermediary may not have acted as an agent for you within years of the transaction, that means you’ll need to find someone you can trust to act as your intermediary. Our expert staff can help you improve your financial and investment position. ESI ) provides consulting services and documentation to real estate investors, their accountants and tax attorneys.

They are thorough in their work and make the tax preparation easy for our CPA firm. Interested in learning more? Replacement property can be acquired and parked with a qualified intermediary (QI), as defined in Regs. I (g)(4), or more likely, an affiliate of a QI. The funding for the property would typically come from guarantees or loans of the taxpayer (or from entities related to the taxpayer).

A tax-deferred exchange is a valuable investment tool that allows you to dispose of investment properties and acquire like-kind properties while deferring federal capital gains taxes and depreciation recapture.

Most states with a capital gains tax offer a similar tax advantage. All Real Property, Inc. But many people don’t understand exactly what an intermediary does.