1031 Exchange intermediary

Prepare documentation concerning the relinquished asset and the replacement property. As a Qualified Intermediary , Wells Fargo typically holds funds during the course of deferred exchanges. The assignment of the sales contract to the Qualified Intermediary must also be in place. A professional Qualified Intermediary , performs several vital functions in an exchange and operates under the “safe harbor” set out in Treas. Although the process of completing an exchange is relatively simple, the rules are complicated and filled with potential pitfalls.

Providing Leadership.

If the Taxpayer meets the prescribed criteria as established by the Internal Revenue Service (IRS), then capital gains taxes may deferred by “Exchanging” property. A Qualified Intermediary (QI) is the professional provider of the mandatory mechanics of an exchange. The use of a QI, as an independent party to facilitate a tax-deferred exchange , is a safe harbor established by the Treasury Regulations. Under this structure, Investors Title Exchange Corporation acts as a qualified intermediary in tax-deferred exchanges.

There is an old adage that states “Just because you can do something-doesn’t mean you should. 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. Our specialty is helping you exchange your investments to meet your financial needs. The qualified intermediary can have no other formal relationship with the parties exchanging property.

When conducting an exchange , it is imperative to ensure that the Qualified Intermediary is experienced and thoroughly understands the various tax codes involved.

Independent Exchange Services, Inc. We provide each client with innovative tax deferral strategies tailored to their particular circumstances, unparalleled professionalism and secure guardianship of principle. No matter what size exchange. The word “qualified” refers to the intermediary’s relationship to the Taxpayer.

To affect such exchange , Buyer reserves the right to assign their position herein to a Qualified Intermediary. Whenever a business or investment property is sold and there is a gain, generally the person selling the property has to pay taxes on the gain at the time of sale. In addition, around one-third of their specialists are also lawyers.

While qualified intermediaries are not allowed to give legal advice, you can access their law staff at no additional cost. Please click on the links at the top or bottom of the page to learn more about us and what we do. ADE has the edge with years of experience.

They must be independent individual or organization that does not have a business or family relationship with the exchanger, prior to the transaction. That sai every exchange has its own set of circumstances. You should consider the type of exchange you need and additional services needed to make sure your exchange goes smoothly.

John is a licensed New Hampshire real estate professional and coordinates our real estate and alternative exchange activities. They are thorough in their work and make the tax preparation easy for our CPA firm. Instant Download and Complete your Tax Free Exchange Forms, Start Now! All Major Categories Covered.

Your qualified intermediary is essential to the process because they (among other things) hold your exchange funds for you while you wait for the process to complete.

What is a Qualified Intermediary? Accommodator, Exchange Service company or Exchange Facilitator. This person is also known as a Q. Who can this person be?

Once the funds are in your name, you owe taxes. The purchase must be one or more of the properties on the Day Identification List. There are no exceptions and no extensions to this rule.

The QI must be a neutral third party to the transaction and will be assigned into the transaction as the seller (or buyer) and ensure the exchangor avoids constructive receipt of sale proceeds.