OUR QUALIFIED INTERMEDIARY SERVICES

A Qualified Intermediary (QI) is an essential role in every 1031 exchange. In 1991, the IRC Section 1031 regulations were updated to require the use of an impartial third party to hold funds when conducting the sale and purchase of real estate through a 1031 exchange. Thus, the role of the QI was born.

The Role of the QI

Why do you need a QI?

The key element in a successful exchange is that the taxpayer is not, at any time, in receipt of any portion of the funds from the sale of the relinquished property, otherwise, the exchange fails. The role of the Qualified Intermediary is to ensure the Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange stays within compliance.

In order to do so, the QI holds the funds of the relinquished property and then transfers the funds for the purchase of the replacement property, all parties buy and sell via the QI, so the taxpayers are never in receipt of the funds.

What Does a QI Do?

Per a signed Exchange Agreement the QI conducts the following in relation to a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange :

Acquires the relinquished property from the taxpayer and transfers the relinquished property
Acquires the replacement property and transfer the replacement property to the taxpayer
Additional responsibilities of the QI include:
- Structures the exchange in accordance with the IRS regulations
- Prepares the related documentation
- Safeguards proceeds from the sale of the relinquished property(s)
- Continuously monitors and advises the taxpayer to ensure compliance with federal and state 1031 and QI requirements

What our customers think about us

Peter May, in the last week

Professional and instructional

Bruce Katz, a week ago

The Accruit Company was well represented today by Jillian Rosansky as she gave a very informative seminar, teaching us about 1031 exchanges. She explained the many options and opportunities investors, as well as realtors can have in this field of “Financial Gymnastics”. Thank you Julian

Amanda Nay, a week ago

Excellent training on 1031s! Thank you!

Margaret Morgan, a week ago

Jillian provided excellent training and education on 1031 exchanges. She is engaging and knowledgeable.

Ashley Rudy, a week ago

Darcy was fantastic and very professional. I would highly recommend her services.

Accruit's QI Services

We Handle All Types of 1031 Exchanges, From Simple to Complex

Accruit is the leading independent 1031 Exchange Qualified Intermediary. With a team of 1031 Exchange Subject Matter Experts backed by patented technology, we are proud to offer best-in-class service on all types of 1031 Exchanges including:

Forward Exchanges
Reverse Exchanges
Built-to-Suit and Improvement Exchanges
High-Volume Exchangers
Multiple Buyers and Sellers
Fractional Interests, Delaware Statutory Trusts (DSTs) and Tenants in Common (TICs)
Seller-financed Transactions
Properties held in Trusts or LLCs
Multiple Relinquished and Replacement Properties
Exchanges That Occur In Multiple States

Our team of experts is available to answer the questions you have regarding your exchange, at no cost to you! We want to help you set up your transaction in the best way possible to yield you the most benefit from your exchange.

The Accruit Difference

When choosing a Qualified Intermediary (QI) to handle your 1031 Exchange, also known as a like-kind exchange, it is essential to exercise due diligence to ensure the proper and successful completion of your exchange. While there are many Qualified Intermediaries out there, not all are created the same. Accruit is proud to offer boutique-style service across a large volume of exchanges, based on all of the factors that set up apart from other QIs.

Years of Experience

Accruit and its subsidiaries have been actively involved in real estate, trust administration and 1031 exchange transactions since 1978. Accruit’s executive team and experienced client service representatives can cumulatively claim nearly two centuries in the 1031 exchange business.

Qualified Professionals, Attorneys, CPAs, and Certified Exchange Specialists® on Staff

Accruit has five staff attorneys, one Certified Public Accountant (CPA), and five Certified Exchange Specialists® on staff. CES® is a designation developed by the FEA and obtained only after years of experience, qualification and testing, on staff and more in training.

Safety and Security of Exchange Funds

Accruit works with depositary banks uniquely situated to provide for the safety and security of exchanger funds, all funds are held in segregated bank accounts. Accruit has the ability to provide dual signature accounts requiring exchanger approval before the movement of exchanger funds. It also has the ability to provide qualified trust and escrow accounts to further protect deposits.

Fidelity Bonding and E&O Insurance

Accruit holds the highest levels of safety and security of funds that exceeds best practices and state regulatory requirements. Accruit maintains coverages of $50 Million Fidelity Bond, $25 Million Errors & Omissions, and $20 Million Cyber Liability.

Patented 1031 Exchange Technology

Accruit developed and patented the only Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange workflow technology Exchange Manager Pro^SM. Exchange Manager Pro^SM provides a standardized workflow with automated deadline reminders and document creation increasing efficiencies and reducing the potential for errors throughout the 1031 exchange process.

Dedication to the 1031 Exchange Industry

Accruit’s long-standing commitment to the Federation of Exchange Accommodators (FEA) includes three past presidents, four past and present FEA board members and multiple FEA committee members. Accruit has helped lead efforts in Washington, D.C. to preserve Section 1031 exchanges for taxpayers.

Regulatory Measures

It's important to note that there is currently no federal regulation of qualified intermediaries. However, with the help of the Federation of Exchange Accommodators (FEA), a number of states, including Colorado, have begun taking the lead in assuring higher professional standards for QIs. Some of the newly enacted requirements (which can vary from state to state) include:

Qualified escrow and/or trust accounts for client funds
Minimum bond and insurance requirements
Fund withdrawal authorization requirements
Registration and licensing requirements for QIs
Investment limitations on exchange proceeds

These are just some of the new state level regulatory requirements for QIs, and Accruit has taken a leadership role in making sure that legislators are fully informed in order to properly protect exchangers.