Qualified Intermediary (QI)

Role of the QI

A Qualified Intermediary (QI) is required to facilitate the exchange properties under Section 1031 of the Internal Revenue Code. A QI like Security 1st Exchange will assist in simplifying the process.

As QI, Security 1st Exchange prepares documentation to satisfy the IRS requirements in the transferring of your relinquished property, by taking control of the proceeds at the closing of your sale, and then using those funds as down payment on your replacement property. Proper documentation and coordination of this process is crucial to maintain the integrity of the 1031 Exchange.

All QIs are not the same. Taxpayers should always look for experience of the QI, security of the taxpayer’s funds while on deposit, and a history of exceptional service to the customer. These are all characteristics that Security 1st Exchange is known for.

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