What is a Qualified Intermediary?

A qualified intermediary is typically a financial institution that agrees to hold funds paid for a real estate asset that is being used in a 1031 Exchange. The intermediary agrees to oversee the 1031 process, typically by entering into a contract with the seller, so that the seller never has constructive receipts of the proceeds from the property sale. The intermediary cannot be a related party.

Related Terms

What is a Qualified Plan?

What is a Qualified Education Assistance Program?

Easily save clients thousands in taxes.

Scan client returns.

Uncover savings.

Export a professional tax plan.

Start Free Trial

Tax strategies to save every dollar you deserve

Instead helps you find every eligible tax strategy, from basic credits and deductions to complex scenarios, ensuring you maximize your savings.

Start today

Oil & gas deduction

Drill into tax savings. Maximize deductions for both tangible and intangible drilling costs.

Hiring kids

Reduce taxable income & self-employment tax by hiring your kids.

Home office

Deduct qualified expenses for using your home for business purposes.

Meal expenses

Business can typically deduct 50% of meals associated with doing business with some cases allowing up to 100% deduction.

Travel expenses

Businesses can deduct necessary travel expenses, like airfare and lodging, directly related to operations for tax savings.

Vehicle expenses

Vehicle tax deduction allows deduction of business vehicle expenses, using a per-mile rate or actual costs, from taxable income.

Late S election

A Late S Election lets a corporation request IRS S corp status post-deadline.

Late C election

A Late C Election is a request to the IRS for C corporation status after the deadline.

Depreciation

Business can typically deduct 50% of meals associated with doing business with some cases allowing up to 100% deduction.

R&D tax credit

Fuel your venture's growth and innovation with the R&D tax credit. Not just for tech firms or big corporations.

Clean vehicle

Businesses and Individuals can receive a tax credit for purchasing new eco-friendly vehicles. Individuals may also qualify on used eco-friendly vehicles

Residential clean energy

Taxpayers who invest in renewable energy improvements for their home or second home may qualify for a credit to lower their income tax.

Augusta rule

The Augusta Rule lets homeowners rent their property tax-free for up to 14 days a year without reporting the income.