Why Is a Qualified Intermediary Required in Pointe A La Hache, LA?
The IRS mandates that a QI hold the proceeds during a 1031 exchange to ensure the taxpayer in Pointe A La Hache, 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 Pointe A La Hache, 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