In a 1031 exchange, the proceeds from the sale of the relinquished property cannot be held by the taxpayer (investor) or anyone closely related to them. If the taxpayer in Pointe A La Hache, LA receives or controls the funds, even temporarily, the exchange will be disqualified, and capital gains taxes will be owed.
What Is a Qualified Intermediary (QI) in a 1031 Exchange?
A Qualified Intermediary (QI)—also called an Accommodator or Exchange Facilitator—is a neutral third party who holds the proceeds from the sale in Pointe A La Hache, LA to ensure the transaction complies with IRS Section 1031 rules.