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What
makes a Qualified
Intermediary 'Qualified'...? |
Trick
question: it has two
answers.
1.
The I.R.S. answer: technically,
nothing! In the IRS
regulations, a "qualified" intermediary
is anyone who is not "disqualified." You
are disqualified if
you have acted as the
employee, attorney,
banker, broker, or
real estate agent for
an exchanger within
the past two years,
or if you are related
to the exchanger. |
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An
entity (like a corporation)
is disqualified if any disqualified
person owns more than 10% of
that entity.
Other
than that, ANYONE, according
to the IRS, is qualified to
be your intermediary. Even
a convicted felon!
2.
The Experts' answer: You
should insist that your Qualified
Intermediary actually have
some qualifications! Since
the IRS sets no standards,
it is up to you to choose
a Q.I. with expertise, integrity,
and experience. Here are
some criteria you can use
to select a truly QUALIFIED
intermediary:
- Will
your exchange be handled
by professionals?
- Is
your Q.I. available to you
to answer your questions
throughout the exchange,
no matter how complex?
- Will
your Q.I. defend your exchange
if it is audited?
- Is
the Q.I. bonded?
• How will the Q.I. hold
your exchange funds?
- Will
the Q.I. give you honest
and direct access to view
your account balance, 24/7?
In
short, anyone CAN be your QI,
but not just anyone SHOULD be
your QI.
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