A qualified intermediary (or QI) is an important player in a 1031 exchange, acting as a sort of neutral adviser to the taxpayer conducting the exchange. Give us a call today to speak with an experienced Duluth qualified intermediary and get your exchange started – 218.831.1031.
Qualified Intermediary Benefits & Rules
A qualified intermediary is a neutral third-party who helps the taxpayer facilitate their 1031 exchange by preparing the necessary documents, coordinating wire transfers, and counseling the taxpayer throughout their exchange.
There are a few restrictions that the IRS has set in place regarding who can and cannot act as a qualified intermediary during a 1031 exchange. Blood relatives, as well as agents of the taxpayer (accountants, CPAs, real estate agents, etc.) are not allowed to act as intermediaries during the exchange. The idea behind a qualified intermediary is that they are a neutral third party and can act as such during the exchange. A family member or business partner is not a neutral party and thus cannot act as your 1031 qualified intermediary.
The best course of action is to hire an intermediary who deals exclusively in 1031 exchanges, and has a long history of successful exchanges. Working with a company whose business it is to conduct exchanges will give you piece of mind and access to a wealth of knowledge throughout your exchange.
Contact a Duluth Qualified Intermediary
The benefits to having a qualified intermediary to facilitate your exchange are numerous. Your intermediary will prepare all the required documents, and make sure that you hit all of the deadlines. Additionally, your qualified intermediary is available throughout your exchange to answer any of your questions and ensure that you complete all the necessary steps for a successful 1031 exchange.
Contact our Duluth qualified intermediaries today to talk about your 1031 exchange and defer your taxes on the sale of real or personal property – 218.831.1031.