Whether you are playing a game, handling a transaction or running day to day operations in your office, it is always important to surround yourself with dedicated professionals working toward a common goal. The same is true in a 1031 exchange. Today’s Tuesday Tip will address the role of the Qualified Intermediary (QI) and why it is important to do your research when choosing a QI.
A Qualified Intermediary, such as 1031 CORP., acts as the middleman or facilitator in a tax-deferred exchange. Our experienced Exchange Team prepares all required documentation including the exchange agreement and communicate directly with you and your professional advisors and keeps you aware of the time deadlines and exchange guidelines. 1031 CORP. also coordinates the details with closing and escrow agents and holds your exchange proceeds in a highly secure exchange deposit account during the exchange period.
An interesting fact about the term qualified: our role has little to do with our qualifications. Instead, it refers to our relationship to you, the taxpayer. In order to act as your QI, we cannot be your close relative, professional advisor (attorney, accountant or real estate professional), partner or employee. We are an independent party to the transaction. 1031 CORP. can certainly answer your questions about exchange regulations and procedures, but we cannot provide any type of tax or legal advice. We recommend reaching out to your tax and legal advisors to discuss your current situation and assess whether or not a 1031 exchange makes sense for you.
So what sets 1031 CORP. apart from other QIs? Here are a few reasons why 1031 CORP. is your partner throughout the exchange:
- We offer superior security of funds including a segregated FDIC insured account for each exchange including your name and TIN;
- You can view your exchange account on the bank’s website anytime;
- We maintain a multi-million dollar fidelity bond and professional liability coverage;
- Our professional Exchange Team, which includes Certified Exchange Specialists®, possess decades of combined exchange industry experience and has facilitated thousands of exchanges;
- Our comprehensive expertise enables us to handle real estate exchanges of all sizes and complexity;
- One Exchange Officer and Exchange Coordinator Team will work with you throughout the exchange process although our entire team will be familiar with your transaction and available to answer your questions at any time;
- Our documents are prepared by seasoned professionals that know local real estate and title practices;
- We send you a complete post-exchange packet containing copies of all pertinent exchange documents and a helpful year-end tax reporting booklet to assist your tax advisor prepare your IRS Form 8824;
- Are always available to answer your questions and so much more!
Our Exchange Team is happy to discuss our services and how we can help you put Section 1031 to work for you!
