Need A Qualified Intermediary
Qualified Intermediary (QI) facilitates a tax-deferred exchange. The IRS requires the use of a QI for a Section 1031 Exchange.
- The purchase and sale contracts are assigned to the QI.
- The sale proceeds are held by the QI in a secure escrow bank account until they are needed to acquire the replacement property.
- The QI receives the client's identification of the replacement property on or before the 45th day after the closing.
- The QI uses the proceeds to acquire the replacement property you identify and transfer the title to your name.
Your CPA, Attorney, Equipment Dealers, Business associates or relatives can NOT serve as your QI.