What is a Qualified Intermediary (Accommodator) and do I need one?
The Internal Revenue Service will disqualify a 1031 exchange, recharacterize it as a taxable sale, and subsequently assess the depreciation recapture and capital gain income tax liabilities if you have the ability (right) to access, control or receive, or could have received, the sale proceeds after the disposition (sales) of your relinquished property (constructive receipt and/or actual receipt). Section 1.1031 of the Department of the Treasury Regulations specifically requires the use of a Qualified Intermediary, also known as a 1031 Exchange Accommodator or 1031 Exchange Facilitator in the real estate industry. As the Qualified Intermediary, Exeter 1031 Exchange Services, LLC will be assigned in to the transaction on behalf of the Investor as the seller or buyer, depending on which side of the transaction you are on, and hold the net sales proceeds from the sale of the relinquished property until the like-kind replacement property transaction is ready to close. The Department of the
