Our Services and
Why You Need a Qualified
Intermediary
Section 1031 of the
Internal Revenue Code allows an owner of
investment property the opportunity to
“sell” their property and defer paying
federal taxes on the transaction. Many
states also allow taxes to be deferred
under a 1031 exchange. In utilizing
Section 1031, the investor can have a
larger portion of the proceeds of the
relinquished property available to
invest in one or more like-kind
replacement properties, and can
further leverage their investment in
such property.
In order to successfully
complete an exchange, the
Exchangor must plan for the exchange
transaction prior to the closing of
title on the relinquished property. Internal
Revenue Service safe harbor guidelines
necessitate the use of a Qualified
Intermediary (QI) in the exchange
process.
A QI, as defined by the
IRS, is a third party who is not the
taxpayer and who acts to facilitate a
deferred exchange by entering into an
agreement with the taxpayer for the
exchange of properties. Attorneys &
Accountants 1031 Services, LLC,
is a professional QI and performs
several critical functions
in an exchange.
Without a QI, and a
written Exchange Agreement entered into
between the
Exchangor
and QI, the IRS may not
define a transaction as an “exchange”,
and the transaction may not qualify for
tax-deferred treatment.
You need a QI to:
-
avoid "Disqualified Person" issues
-
comply with IRS recognized safe
harbors
-
hold exchange funds and properties
-
prepare exchange documents
-
provide peace of mind
Please visit our
Exchange Basics & Library for an
in-depth explanation of the 1031
exchange process.
 
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