Must I Hire a Qualified Intermediary for a 1031 Exchange?

Section 1031 of the tax code does require that a taxpayer retain a Qualified Intermediary (QI) for their transaction when they will be performing a delayed exchange. The QI must be engaged by the taxpayer before the closing of the relinquished property (property being sold. We will prepare the necessary documentation for the transaction and coordinate with the closing agents handling the sale and purchase property, ensuring that the transaction meets 1031 requirements. We also (and most importantly) securely hold the funds from your sale and then coordinate their disbursement at a future date for your replacement property acquisition. At Security 1st Exchange, we hold all exchange funds in a segregated account for the benefit of our Exchangor. There is never comingling of funds with other client funds or operating accounts.

For additional information, please reach out to your tax professional for specific questions or contact the specialists here at Security 1st Exchange for assistance.