1031 Exchange Agreement With Qualified Intermediary In Philadelphia
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The first step in a 1031 exchange is to contact a qualified intermediary (such as First American Exchange), who will create exchange documents that must be signed before the relinquished property is transferred.
Without a qualified intermediary and an exchange agreement, the IRS may not recognize the transaction as a valid 1031 exchange.
A Qualified Intermediary (QI), also referred to as an Accommodator or Facilitator, is a an entity that facilitates Internal Revenue Code Section 1031 tax-deferred exchanges. The role of a QI is defined in Treas. Reg. §1.1031(k)-1(g)(4).
As the nation's largest Qualified Intermediary, IPX1031 provides industry leading exchange services including guidance, expertise and security for 1031 Tax Deferred Exchanges.
In a three or four party exchange, including the Taxpayer, Buyer of the old property and Seller of the replacement property, then yes, a Qualified Intermediary is required. The g(6) constructive receipt limitations of the 1031 code prohibit the taxpayer from touching the exchange funds or the net equity from the sale.
As the nation's largest Qualified Intermediary, IPX1031 provides industry leading exchange services including guidance, expertise and security for 1031 Tax Deferred Exchanges.
