Sometimes people want to know who can act as a qualified intermediary in a 1031 exchange. The treasury regulations specify that the person that acts as your qualified intermediary cannot be a disqualified person.
Employees and Agents
For example, anyone that has been your employee or agent - your accountant, your attorney, etc. during the last two years cannot be your qualified intermediary. The idea is they're looking for someone that is unbeholden and beyond the sway of the taxpayer.
People Related by Blood or Business Affiliation
Furthermore, people that are related to you by blood or by business affiliation are also disqualified. So your business partners, your son, your mother, your daughter - these people are also disqualified. Typically people go to a corporate 1031 exchange company that’s business is to facilitate exchanges and have that neutral unbeholden and professional qualified intermediary company facilitate the exchange.
There is a certain amount of credibility that goes along with using a reputable 1031 company that's been in business facilitating exchanges for a long time. Furthermore, 1031 exchange professionals typically know what they're doing because that's what they do and they can be a resource for you as you go through this process. So to summarize, anyone that's been your employer, relative, or agent during the past two years is excluded from being eligible to be your qualified intermediary.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2021 Copyright Jeffrey R. Peterson All Rights Reserved