1031 Exchanges are a method for selling property and rolling your capital gains into another property. In order to do this you must use a qualified intermediary. A search on the internet can give you a list of those.
What are the 1031 exchange rules?
There are several components that are essential for 1031 exchanges. They include but are not limited to: working within the time period required between buying & selling a property; hiring an intermediary (1031 company) to handle the funds/paperwork between the two or more sales/purchases; finding your replacement property and confirming with your CPA the best route for you to take.
The role of the Qualified Intermediary (QI)
The QI is a person or entity that can legally hold funds to facilitate a 1031 exchange. To be qualified, the intermediary must not be relative or agent of the exchanging party. You may find that some title companies act as an intermediary.
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