A Qualified Intermediary (QI) is the independent party who makes a 1031 exchange work. The tax rules will not let you touch your own sale proceeds — if you receive them, or even could have, the IRS can treat the exchange as a taxable sale. A QI solves that: it steps in on paper as the seller and buyer, holds your proceeds in a segregated escrow account, and uses them to purchase your replacement property, all under a written exchange agreement that strictly limits your access to the funds in the meantime. The QI must be truly independent — not you, not your agent, and not a related party.
Questions about how a Qualified Intermediary fits your situation? Call us at 603-444-0020.