Like-Kind Exchanges and Qualified Intermediaries
10 Pages Posted: 2 Jul 2009 Last revised: 6 Jul 2009
Date Written: June 25, 2009
The economic downturn has depressed the real estate market, a significant component of the section 1031 industry. In its wake, the industry witnessed three major qualified intermediary failures. QI failures deprive exchangers of exchange proceeds and also create potential tax and legal liablities for the exchangers. This article analyzes those potential liabilities and also discusses the cause of QI failures and actions that exchangers and QIs may consider to help safeguard exchange proceeds.
Keywords: section 1031, like-kind exchange, qualified intermediary, qualified trust, qualified escrow account, bankruptcy, QI failure
Suggested Citation: Suggested Citation