1031 Exchange Accommodator Required Part of Process

The Internal Revenue Services, many years ago, added to its code a provision for property sellers to defer capital gains tax by using the proceeds of the sale for the purchase of a similar property. In order to qualify for those tax benefits, however, all of these transactions must be handled by a Qualified Intermediary (QI), or exchange accommodator. The 1031 exchange accomodator, in addition to other things, is responsible for serving as the third party who holds the funds from the sale.There are dozens of accommodators serving clients around the country. Often these companies are a part of a larger title insurance company, but in any case, you should look for their experience and background in this particularly obscure part of tax and real estate law.

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