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Selecting a Trusted Qualified Intermediary for Your 1031 Exchange

Accruit
12/16/13
1031 Like-Kind Exchanges are a valuable asset for businesses’ growth and success. However, many companies seeking tax relief don’t know that there are no licensing requirements for Qualified Intermediaries. The only stipulation set forth states that a QI cannot be related to or have a financial relationship with the taxpayer. In 2008, a 1031 Exchange and Qualified Intermediary service provider filed for bankruptcy, which froze customers’ exchange funds in illiquid securities. Customers were forced to seek their funds in bankruptcy court where many ended up missing their specified exchange period and facing tax liabilities due to the failed exchange.

1031 Like-Kind Exchanges are a valuable asset for businesses’ growth and success. However, many companies seeking tax relief don’t know that there are no licensing requirements for Qualified Intermediaries. The only stipulation set forth states that a QI cannot be related to or have a financial relationship with the taxpayer.

In 2008, a 1031 Exchange and Qualified Intermediary service provider filed for bankruptcy, which froze customers’ exchange funds in illiquid securities. Customers were forced to seek their funds in bankruptcy court where many ended up missing their specified exchange period and facing tax liabilities due to the failed exchange.

As the nations leading QI for LKEs involving business assets, Accruit handles over 30,000 transactions a month totaling over $7 Billion annually. We deliver the highest level of integrity and competence to assure compliance with all regulations and to safeguard the security of funds awaiting reinvestment. Contact Accruit today to reinvest unnecessary taxes back into your company.

Read our full list of 1031 Exchange tips for selecting the right Qualified Intermediary.