What is a Qualified Intermediary?
Being an investor yourself, you might be aware of Section 1031 of IRC (Internal Revenue Code) that enables the investors to defer capital gains tax when he exchanges the investment property for another like-kind property. In any case, what you should not forget is that the investor cannot complete the 1031 exchange without involving Qualified Intermediary. Yes, ‘that’s right. ‘It’s necessary to engage a Qualified Intermediary in every 1031 exchange.
A Qualified Intermediary is an individual who is responsible for dealing 1031 exchanges on behalf of the investor. From finding a purchaser for your relinquished property to finding a potential replacement property and then receiving it, everything is done by the Qualified Intermediary.
Things to be Looked in a 1031 Exchange Qualified Intermediary
- Real estate market is about contacts. The reason is obvious, finding a perfect property under constrained budget and time is an art that not every person is the master of it. A good Qualified Intermediary probably have many contacts. Therefore, the problem of finding a replacement property within 45 days is solved the minute you enter a Qualified Intermediary’s office.
- An experienced individual is absolutely a better choice for the role of a Qualified Intermediary than some newcomers. Things, similar to an individual’s experience, number of 1031 exchanges they have been a part of, and so on should be checked appropriately before finalizing a Qualified Intermediary. Individuals with less than 6 years of experience shouldn’t be in your record.
As we can see, Qualified Intermediary plays an important role in the 1031 exchange. That’s why it is necessary to consult a highly experienced QI for your 1031 exchange. However, before proceeding, you should know how we can reach to best Qualified Intermediaries available in the market? For that, you may need the help of a 1031 exchange advisor or expert, and we will assist you with that. We, at www.qualifiedintermediaty.com, can coordinate you with up to three highly qualified 1031 exchange experts and one out of them will help you in finding the best QI for your 1031 exchange.
For consultation and assistance regarding qualified intermediary, you can call on 888-993-2835 or contact one of our advisors to know more about qualified intermediary. You can also email us at firstname.lastname@example.org.