Who can serve as the Qualified Intermediary in a 1031 exchange?
Q: I am considering a 1031 exchange, but have gotten conflicting information about who can serve as my Qualified Intermediary. Are there regulations regarding this role?
A: The identity of the QI is an important element of a 1031 exchange. Any of these people with whom you have had a relationship within the last two years are considered disqualified: your attorney, CPA, real estate broker, investment banker, or any employee of the taxpayer. In addition, anyone that is directly related to you by blood or who is related for tax purposes (as more clearly defined under Section 707(b) or 267(b) of the Internal Revenue Code) is considered disqualified.