To the extent 1031 Exchange is concerned, it is the Qualified Intermediary who can be called the top "1031 exchange expert" who makes or breaks the deal. The role of the QI is necessary for completing the exchange successfully. It is the QI who acts as the "knot" that ties the buyer and seller of the property together under the 1031 Exchange process. Choosing the right 1031 property is most important; otherwise, it will be like going to a phony doctor rather than a qualified doctor for treating some severe disease. That implies a taxpayer aiming 1031 must be cautious about falling victim to a poor facilitator with disastrous outcomes, as he may not do an exchange at all or doesn't know how to structure it. And his deal will not pass the collection at IRS audit, leading to a loss of exchange funds because of poor investing or conscious deceit. Care must be taken to guarantee the credentials of a QI as a knowledgeable, experienced professionals who are clear in thought and communication, and straightforward in dealings. As the 1031 exchange process requires quick decision-making, only an experienced facilitator can help and clearly understand the situation and utilize the options appropriately. Here at 1031 property.com, we have a team of qualified 1031 exchange expert that will help you in completing your 1031 exchange. What makes a good or bad 1031 exchange QI is his level of depth in knowledge and resources, below mentioned are some qualities to become a QI A person can become a QI if he or she has no financial association (for at least the last two years) with the seller or purchaser. A person who is related to the investor in any manner (personally or professionally) cannot become a QI. He or she should be right in character. A QI has to remain under contract with the taxpayer. Responsibilities of QI under 1031 exchange To become a QI, you have to fulfill the list of responsibilities towards the seller or taxpayer mentioned below: QI should acquire the relinquished property. QI should transfer the relinquished property. Holds the funds safely until the closure of the deal occurs. QI transfers the replacement property. Then QI acquires the replacement property. There is no license required for the 1031 tax exchange experts. No federal regulations for 1031 Exchange facilitators are in place, and only two states have mandate licensing and bonding requirements for the QI's. Thus the main obligations of the this expert can be summed up as receiving the 45-day identification notice for replacement property and delivering escrow funds for replacement property settlement and arranging for direct assigning of the properties and ultimately providing the final accounting.
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Authormore than 15 years of experience in the 1031 Exchange arena.. ArchivesCategories |