A successful 1031 exchange isn’t a do-it-yourself project. You must follow IRS rules to realize the tax deferral benefits and you’ll need a middle person, called a qualified intermediary (QI). David Moore walks through the steps of facilitating a 1031 exchange.

Commonly Asked Questions

There are a lot of moving parts to a 1031 exchange and a lot of questions that investors can have about them. Here’s some of the most commonly asked questions about qualified intermediaries, and make sure to check out the full video for more details!

What is a QI (Qualified Intermediary)?

A QI is an unrelated party who participates in the tax-deferred, like-kind exchange to facilitate the disposition of the exchangor’s relinquished property and the acquisition of the exchangor’s replacement property per the exchange agreement.

The Qualified Intermediary has NO economic interest except for any compensation (exchange fee) it may receive for facilitating the exchange as defined in Section 1031 of the Internal Revenue Code. A “Qualified Intermediary” is the correct technical reference according to Treasury Regulations, but the Qualified Intermediary can also known as the Accommodator, Facilitator or Intermediary while working in exchange services.

When should a QI become involved in my 1031 exchange?

As early as possible. As early as when you first purchase the property but at the very least when you choose to sell it. Being involved at the purchase time of the property allows a QI to aid in structuring the ownership in a manner that allows you to get out the way you want when you want to. Involve a QI before going through the stages of the sale in order to avoid reaching the state of the sale in which a 1031 exchange is no longer an option for the property.

It’s important to understand how a qualified intermediary is involved in your 1031 exchange. Watch the video or read the full transcript below to get the full details on what a qualified intermediary does for your investing.

Read the Full Transcript

The sooner you involve the team of professionals at Equity Advantage in your 1031 exchange, the better. They’re seasoned experts who know all the ins and outs of this complicated transaction. Call them at 503-65-1031 and protect your investments!