What do we do?

​

In the most technical sense, a QI is a person or entity acting to facilitate an exchange under section 1031 and the regulations. This person may not be the taxpayer or a disqualified person . Section 1.1031(k)-1(g)(4)(iii) requires that, for an intermediary to be "qualified", the intermediary must enter into a written exchange agreement with the taxpayer and, as required by the exchange agreement, acquire the relinquished property from the taxpayer, transfer the relinquished property, acquire the replacement property, and transfer the replacement property to the taxpayer. I

 

In plain English, the QI acts as the buyer of the relinquished property and seller of the replacement property with the exchanger, which is what creates the exchange part of the transaction. The QI also holds the funds from the sale of the relinquished property until it is time to purchase the replacement property, thereby meeting the requirement that the seller not have receipt of funds during the exchange period. We hold all funds in segregated accounts, so you can rest assured that your funds will not be comingled with anyone else's.

 

Additional responsibilities of the QI include: 

​

• Structuring the exchange

• Preparing the related documentation

• Safeguarding proceeds from the sale of the relinquished property(s)

• Continuous monitoring and advising to ensure compliance with federal and state 1031 and QI requirements