Qualified Intermediary Services

Qualified Intermediary Services

Qualified Intermediary Services

We Provide Expert and Secure Facilitation of All Types of 1031 Exchanges.

A Like Kind Exchange (also referred to as a 1031 exchange) is one of the oldest and most commonly employed tax-deferral strategies under the U.S. tax law.  The vast majority of all 1031 exchanges involve the use of a Qualified Intermediary (QI).  There are several benefits to using WTP Exchange to act as the QI and facilitate your exchange.

Exchange Expertise
There is too much at stake to trust your exchange transaction to just anyone.  The tax consultants at WTP Exchange have the knowledge and experience to carefully design and implement an exchange process tailored to your specific requirements.

Convert a Sale Followed By a Purchase into an Exchange
By involving a QI in the transaction, you do not need to find another party that is willing to swap properties with you.  Instead, you can sell your property to one party, and then purchase the replacement property from another party.

Avoid Actual or Constructive Receipt
Actual or constructive receipt of the proceeds from the sale of your property will result in the recognition of at least some of the tax gain that you were hoping to defer.  The proper use of a QI allows you to avoid this issue and potentially defer all of the tax gain.

The rules and requirements for a 1031 exchange can sometimes seem overwhelming.  Are the properties being sold and purchased held for business or investment purposes?  Are the properties “like-kind” under the tax law?  Can the replacement property be purchased prior to selling the relinquished property?  The experienced tax consultants at WTP Exchange thoroughly understand the rules and requirements and can make the exchange process easy for you.

WTP Exchange can facilitate all types of 1031 exchanges – everything from a forward-delayed exchange of real estate to a reverse or improvement exchange involving personal property.  The setup and facilitation of your exchange includes the following steps:

  • Initial consultation to understand your transaction and discuss the rules and requirements for a 1031 exchange
  • Identification and resolution of any exchange-related issues
  • Discuss the alternatives to structuring your exchange, including the use of an Exchange AccommodationTitleholder (“EAT”) in the case of a reverse or improvement exchange
  • Discuss the alternatives for funds security, including the use of qualified escrow or trust accounts
  • Preparation and execution of the exchange documents
  • Coordination with other parties such as settlement agents, brokers, or advisors
  • Proper management of the exchange funds