Qualified Intermediary for a 1031 Exchange: Who, What They Do, and How скачать в хорошем качестве

Qualified Intermediary for a 1031 Exchange: Who, What They Do, and How

Dave and his national team provide safe and secure Qualified Intermediary services that include a dedicated dual signatory account exclusive to each exchange at an FDIC insured bank. Call us to find out more at 850-889-1031. CONNECT with us Website: https://www.the1031investor.com/ LinkedIn:   / the-1031-investor   Facebook:   / the1031investor   Twitter:   / davefoster1031   BiggerPockets: https://www.biggerpockets.com/users/d... ABOUT The 1031 Investor, Dave Foster Dave is a degreed accountant and serial real estate investor who is a qualified intermediary and consultant for tax saving strategies such as the 1031 exchange and the section 121 homestead exemption. Dave breaks down exactly how to use the 1031 exchange in layman’s terms. #1031exchange #1031exchangexplained #whatis1031exchange #the1031investor #davefoster ===== TRANSCRIPT So, now let's move our discussion a little bit. You've got the basics - let's talk about some of these things in specific. First of all, the qualified intermediary (QI). And, we said they're required by the Internal Revenue Service to document your transactions. So, who could serve as a QI? First of all, they've got to be an unrelated third party. So, everybody that you would normally trust to do your exchanges - your banker, your attorney, your hairdresser, your wife or husband cannot be your 1031 accommodator, your real estate agent cannot be your qualified intermediary. It's got to be totally unrelated. The only thing they could do for you is to process your 1031 Exchange. Secondly, they've got to be qualified. Now, again, I couldn't write fiction this good. The IRS actually defines who is “qualified” by stating that you are qualified to be a qualified intermediary . . . if you are not disqualified. So, okay, what disqualifies you from being? If there's an agency relationship, a business relationship or a family relationship. So basically, as long as you've never bought used tires from the used tire store down the road, they could be your qualified intermediary . . . but I doubt if that's going to give you a lot of comfort in letting someone like that handle your transaction. So, let's talk about what the 1031 qualified intermediary does. First of all, they’re going to document the entire transaction along with your regular professionals. Meaning, there's going to need to be an exchange agreement. That's the agreement between you and your qualified intermediary that lays out the requirements that we've already talked about. It specifies what your role is going to be, what you're going to have to do to finish the job, what the QI is going to do for you. That exchange agreement is your contract with them. Secondly, and this is very, very interesting, there has to be an assignment of rights. You are going to assign your rights to sell the property to your QI. So, typically, we would always ask that if possible, you simply make your contracts assignable. Many states and jurisdictions already have state license contracts that have check the boxes or default cooperation addendums for 1031 Exchange. That's fine as well. But, if you can simply make your contract assignable, that's fine as well. Now if you're watching this right now, you're already under the contract and you aren't just so excited to do your next 1031 but you realize you didn't make your contract desirable. My advice is - don't stress it too much. In seventeen years of doing 1031 Exchanges, I have never had an exchange fall apart because one of the other parties would not cooperate. Remember, you want to sell a piece of property, they want to buy a piece of property and as long as they know that the 1031 Exchange is not going to affect them at least, you're not going to have any problem with them. But making contracts assignable could be a good practice, just in case. Now, the IRS doesn't require that we tell anybody that there's a 1031 Exchange going on in the contract at all. But they do require that which notice be given to everybody. So, if someone is a very private individual and doesn't want their business to be known, what can they do? Well the way we accomplish that is we have what is called a notice of assignment that identifies its 1031 Exchange is happening. We have the title closer hand it out at the closing table. So, there's no advance notice and it is handed to the other party. They don't have to sign it. The title closer is going to sign the affidavit saying that they delivered it to them. So again, that ensures that the other party is not going to be able to hold any power over you, as you're doing the 1031.