- 1031 Exchanges
- Tenants-In-Common
- Exchange Details & Requirements
- Real Estate Professional
Dual Registration Program - Tax Professionals, Legal Advisors & Northland Securities1031
- About Us
- The Tax Deferred Exchange
- How to Initiate an Exchange
- 1031 Exchange Requirements
- Do's & Don'ts of 1031 Exchange Planning
- Can Your Tax Professional or Legal Advisor Be Your Qualified Intermediary?
- Exchange Terminology
- Like-Kind Property
- 1031 Qualified Property
- Delayed Exchange Deadlines
- Tenant-In-Common Interests
- Master Lease-Tenants-In-Common
- Non-Tax Reasons to Exchange
- Role & Selection of a Qualified Intermediary
- Role of a Tax Professional or
Legal Advisors - Disqualified Parties
- Tenants-in-Common Research &
Due Diligence Reports - Exchange Language
Role of Qualified Intermediary
A Qualified Intermediary (Q.I.) is essential in completing a successful IRC 1031 tax deferred exchange. Also known as a facilitator or accommodator, the Q.I. is assigned Exchanger interests as seller of relinquished property and interests as buyer of replacement property.
The Q.I. will hold the sale proceeds of relinquished property in a separate exchange account until funds are dispersed to buy the Exchanger’s replacement property. The Exchanger uses the services of a Q.I. to meet safe harbor requirements and avoid tax consequences realized from actual or constructive receipt of proceeds from relinquished property proceeds.
The role of a Q.I. includes preparation of several legal documents including the exchange agreement, assignment agreements and exchange closing instructions for each settlement officer involved in the exchange.
If you need assistance in finding a Q.I., Northland Securities1031 can provide information regarding highly experienced qualified intermediaries who can conduct the review of Safe Harbor provisions and other requirements for a sucessful 1031 Exchange.