Atlanta Deferred Exchange
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Atlanta Deferred Exchange

What is a Qualified Intermediary?

 

Q: What is a Qualified Intermediary (QI)?

  A: A Qualified Intermediary (QI) is an independent party who facilitates tax-deferred exchanges pursuant to Section 1031 of the Internal Revenue Code. The QI cannot be the taxpayer or a disqualified person.

-Acting under a written agreement with the taxpayer, the QI acquires the relinquished property and transfers it to the buyer.

-The QI holds the sales proceeds, to prevent the taxpayer from having actual or constructive receipt of the funds.
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-Finally, the QI acquires the replacement property and transfers it to the taxpayer to complete the exchange within the appropriate time limits.