A qualified intermediary is essential to the exchange process. It is the qualified intermediary who fulfills the rules of IRS Section 1031, which requires funds from an exchange sale to be held by a qualified intermediary during the 180-day acquisition process. In the case of a reverse exchange, the qualified intermediary holds the title rather than the proceeds of the relinquished property. Here, we will delineate:
- The purpose of a qualified intermediary.
- What a qualified intermediary does.
- How to identify the right qualified intermediary for you.
The Purpose of a Qualified Intermediary
A qualified intermediary is an indispensable component of the exchange process. Plenti Financial serves as qualified intermediary that also facilitates every detail of the 1031 Exchange through the Plenti Exchange Portal.
What a Qualified Intermediary Does
A qualified intermediary holds the exchanger’s funds in a secured account, coordinating with the escrow agent on the relinquished and acquired properties to ensure compliance with the IRS guidelines, which state that the exchanger cannot directly receive funds which qualify for the 1031 Exchange tax benefits.
How to Identify the Right Qualified Intermediary for You
Plenti Financial offers full-service qualified intermediary services. Start your exchange in the Plenti Exchange Portal in order to begin your exchange and, unlike other qualified intermediaries, we will automate the entire 1031 process so that you never miss a deadline or a document (and neither do your agents). Schedule a free consultation with one of our qualified exchange professionals to further explore your options.
Read more about the IRS guidelines regarding how to use a qualified intermediary during the exchange process:
- Miscellaneous Qualified Intermediary Information
- Like-Kind Exchanges Under IRC Section 1031 (PDF)
- Treatment of Deferred Exchanges (PDF)
If you want to automate tasks related to your qualified intermediary, schedule a consultation with us. Plenti Financial is a qualified intermediary. Through the Plenti Exchange Portal, you can automate every stage of the 1031 Exchange process so that the appropriate documents are sent to the necessary parties according to the timeline set forth in IRS Section 1031.