Fairhaven Realty
Fairhaven Realty
Fairhaven Realty, a br of Lakeway Realty, Inc.

What is a Qualified Intermediary for a 1031 Tax Exchange?

Posted on December 16, 2009

It's a windy Wednesday, December 16, 2009 in Bellingham, WA. The weather is warm, too. Nice change from the cold, snow and ice we have experienced in the past few days.

QUESTIONS AND ANSWERS ON 1031 TAX EXCHANGES (continued from previous blogs).
What is a Qualified Intermediary (QI)?
A Qualified Intermediary is an independent party who facilitates tax-deferred exchanges pursuant to Section 1031 of the Internal Revenue Code. The QI cannot be the taxpayer or a disqualified person. (A "disqualified" person is anyone who has a relationship with the taxpayer that is so close that the person is presumed to be under the control of the taxpayer. Examples included blood relatives, and any person who is or has been the taxpayer's attorney, accountant, investment banker or real estate agent within the two years prior to the closing of the relinquished property.)
  • Acting under a written agreement with the taxpayer, the QI acquires the relinquished property and transfers it to the buyer.
  • The QI holds the sales proceeds, to prevent the taxpayer from having actual or constructive receipt of the funds.
  • Finally, the QI acquires the replacement property and transfers it to the taxpayer to complete the exchange within the appropriate time limits.

*Information gathered/quoted from the National Association of REALTORS® online library-1031 Exchange

Share: del.icio.us Digg StumbleUpon
Post a Comment on "What is a Qualified Intermediary for a 1031 Tax Exchange?"
Name
Email
Website
Comment
 
Fairhaven Realty, a Branch of Lakeway Realty Inc. | 1100 11th Street, Bellingham, WA 98225 | Office: 360-676-8990 | Fax: 360-734-5109
©2010 GraphicalData, Inc.   Site Map