1031X — 1031 Exchange Qualified Intermediary

What does a Qualified Intermediary do in a 1031 exchange?

A Qualified Intermediary holds the proceeds from your sale, coordinates documentation with all parties, and transfers funds to acquire your replacement property — all within IRS-required timelines. Without a QI, the exchange is disqualified and capital gains taxes become immediately due.

Can I use a 1031 exchange for commercial real estate?

Yes. Section 1031 applies to all investment and business-use real estate, including commercial, multifamily, industrial, NNN, and mixed-use properties. Any like-kind exchange between qualifying investment properties is eligible for tax deferral.

What are the 45-day and 180-day rules in a 1031 exchange?

After closing on your relinquished property, you have 45 calendar days to identify replacement properties in writing, and 180 calendar days to complete the acquisition. These deadlines are fixed — the IRS provides no extensions except in federally declared disasters.

How does 1031X protect my exchange funds?

Exchange funds are held in segregated Qualified Escrow Accounts, separate from operating funds. Every exchange is backed by Errors & Omissions insurance, Cyber Liability insurance, and a Fidelity Bond. Funds are never commingled. Across 32 years and tens of thousands of 1031 exchanges, 1031X has never experienced a loss of client funds.

What is the difference between a forward and reverse 1031 exchange?

In a forward (delayed) exchange, you sell your relinquished property first and then identify and acquire replacement property within IRS deadlines. In a reverse exchange, you acquire the replacement property before selling — useful when you find the right property before your sale closes.