Qualified Intermediary

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.

The Role of the QI

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.

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Here at Security 1st Exchange we focus on your goals utilizing a 1031 Exchange. When you have questions, we have answers. Get started today.

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Basics of a 1031 Exchange

To structure a 1031 Exchange property under I.R.C. Section 1031, there are some basic requirements that a taxpayer must meet.

Closing Costs

There are always questions from taxpayers as to which closing costs can be paid with sales proceeds when doing a 1031 Exchange. This article provides some overall guidance on the topic.

1031 Disclosure

The IRS requires that if any party to a transaction wishes to do a 1031 Exchange, all parties to the closing are made aware. The best place to do this is in the purchase and sale agreement.

Identification Rules

Section 1031 requires that a taxpayer doing an exchange identify their replacement property while following certain rules.