Qualified Intermediary (QI)

A Qualified Intermediary is an entity that creates documentation supporting a taxpayer’s intent to initiate an Internal Revenue Code Section 1031 tax deferred exchange and holds the exchange proceeds in a manner that preserves principle and liquidity. The Qualified Intermediary’s role is to provide input, helping the taxpayer understand how a 1031 exchange works and interfaces with the title company or closing attorney, so the closing statements reflect a 1031 exchange.

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