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Can You Choose an Escrow Company as Your Qualified Intermediary?
Successfully completing a 1031 exchange requires meticulous attention to detail. Exchangors don’t have to worry about navigating every single detail of their exchanges, however – that job falls on the Qualified Intermediary.
Does a 1033 Exchange Require a Qualified Intermediary?
When hurricane Ian hit southwest Florida in late September of 2022, it destroyed more than 5,000 homes in Lee County and severely damaged another 13,000 residences.1 The damage wrought by Ian left thousands of homeowners pondering their next steps. Homeowners and investors who owned condemned properties may be able to complete a 1033 exchange to replace homes that were destroyed or severely damaged by the hurricane’s wrath.
Can a Title Company Be a Qualified Intermediary?
The potential benefits of employing a 1031 exchange in your investment strategy are attractive. However, as with many appealing tools, investors should be careful and precise in using this one. Since structuring a real estate transaction using the exchange offers the opportunity to defer capital gains taxes, the IRS requires that taxpayers follow the rules precisely.
Why Are Qualified Intermediaries Referred to as Accommodators?
A Qualified Intermediary plays an essential role in successfully executing any 1031 exchange. This professional has several critical responsibilities to ensure that the exchange complies with IRS regulations. Perhaps most importantly, the QI takes possession of the proceeds from the sale of the identified property when it is sold and maintains those funds separately from the investor until they are used to complete the exchange into replacement property (or properties).
Can An Attorney Act as a Qualified Intermediary for a 1031 Exchange?
Almost anyone can become a qualified intermediary. That’s because in most states, there aren’t any specific license requirements, tests, or other hurdles to becoming a qualified intermediary. While almost anyone can become a QI, certain conditions will disqualify a person, which we’ll discuss in this article.
Qualified Intermediary Installment Sale: What You Need to Know
If you have been paying attention to previous Realized blogs, you know that we’ve written a great deal about Qualified Intermediaries (QIs) and their importance to successful 1031 exchanges. Without help from that experienced QI, the like-kind exchange could be derailed, and you could face triggered capital gain taxes.
Is a 1031 Exchange Broker a Qualified Intermediary?
There is little doubt that the successful execution of a 1031 exchange involves a lot of moving parts. There are the various IRS deadlines, not to mention the rules and regulations involved with exchanging one like-kind property into another in an effort to defer capital gains taxes.
What Is the Difference Between a Qualified Intermediary and FATCA?
A Qualified Intermediary or QI is a key participant in a 1031 exchange and is critical to the successful outcome of the transaction. Sometimes referred to as a 1031 Exchange Accommodator, the QI is responsible for the following actions:
Qualified Intermediary Withholding: Everything You Need to Know About QI Agreements, Statements & Foreign Partnerships
Mention the words “Qualified Intermediary” and the next thing that might come to mind is “1031 exchange.” Certainly, QIs are essential when it comes to the successful execution of a real estate like-kind exchange. In this case, the entity, also known as the accommodator, acts to change a sale to a buyer and a purchase from a seller into an exchange of the one for the other. In addition, the QI prevents the taxpayer from being considered in actual or constructive receipt of the proceeds during the interim period between the sale and purchase.
What Are Qualified Intermediary Regulations, Responsibilities, and Obligations?
We discuss the topic of qualified intermediaries frequently at Realized Holdings, and for very good reason. The QI (also known as a facilitator or accommodator) can mean the difference between a successful 1031 exchange, and one that might fail and be challenged by the IRS. A reputable, experienced qualified intermediary must follow certain regulations, responsibilities, and obligations. To understand the activities of this entity requires an understanding of why it’s involved, in the first place.
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