hburkholder Posted October 28, 2008 Report Share Posted October 28, 2008 Is a QI needed for a 1031 exchange if the settlement check from relinquished proerty is made to settlement co of aquired property and settlement takes place the same day? Quote Link to comment Share on other sites More sharing options...
jainen Posted October 28, 2008 Report Share Posted October 28, 2008 >>Is a QI needed for a 1031 exchange<< A qualified intermediary is NEVER needed. It is simply one of several safe harbors for structuring the exchange. If you use a Q.I., the IRS will not question the validity of the transaction (at least concerning how the money and titles are transferred). If you use some other arrangement, I strongly recommend you get professional advice for the legal and tax implications. Nobody can give you a reliable answer without reading all the contracts and supporting documents. One of the potential problems with what you describe is that the settlement companies are probably acting as your agents. Although you choose to have one send the money to the other, you could at any time change your mind and simply keep it yourself, a form of constructive receipt. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.