Why Is a Qualified Intermediary Required in Vernon Parish County, LA?
The IRS mandates that a QI hold the proceeds during a 1031 exchange to ensure the taxpayer in Vernon Parish County, LA does not take possession of the funds. If the investor touches the money, even temporarily, the exchange is disqualified, and capital gains taxes must be paid.
Who Can Be a Qualified Intermediary in Vernon Parish County, LA?
A Qualified Intermediary must be an independent third party. The following cannot serve as a QI:
- The taxpayer (investor)
- A family member or relative
- The investor’s real estate agent, attorney, accountant, or financial advisor (if they provided services in the last two years)
- A business partner or anyone with a financial interest in the transaction