Frequently Asked Questions

What is a Qualified Intermediary?

The 1991 Treasury Rules and Regulations provide guidance on the role of the QI and the documentation they must provide to a 1031 exchange. The QI provides technical experience to maintain the integrity of the exchange. The QI receives the relinquished property from the Exchanger and sells it to the buyer. The QI purchases the replacement property from the seller and transfers it to the Exchanger. A QI can not be a related party, the Exchanger’s employee, attorney, accountant, real estate broker or investment banker, or within two years preceding transfer of the relinquished property. There is no federal agency that regulates the QI industry. Choose carefully.

1031 Exchange

Exchange Basics, Part 10

Failed Exchanges & The Role of the Qualified Intermediary

Like Kind Exchange – Asset Class, Part 4

Schedule a Free Consultation with Marilee Hill

Call 202-413-2432 or Send Your Queries
You’ll Also Receive a Free E-book on 1031 Exchange & DST

General Disclosure
Not an offer to buy, nor a solicitation to sell securities. All investing involves risk. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Information provided on this website is for educational purposes only, and is not a guarantee of performance. Offerings of the type discussed herein are available only via private placement memorandum, and are limited to accredited investors.

Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication

1031 Risk Disclosure:

There is no guarantee that any strategy will be successful or achieve investment objectives;

Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;

Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;

Potential for foreclosure – All financed real estate investments have potential for foreclosure;

Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.

Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;

Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits.

What is a Qualified Intermediary?