The information that you need to provide your Qualified Intermediary is pretty basic. In this article, we will outline all of the info you should have prepared for your QI to ensure a smooth 1031.
First off, it’s a good idea to send the purchase agreement that you’ve entered into (the sales contract that you’ve entered into for the sale of your relinquished property).
Second, you want to provide your basic information (mailing address, phone number, email, and your SSN or your taxpayer ID number “EIN” or “TIN”). Your QI is going to need that tax number to open up a separate segregated bank account in which to put your proceeds.
The QI typically needs more info than what you’ve given. They will seek out the title/escrow company that’s closing the transaction and request the title report (or title commitment or attorney’s opinion) so they can verify exactly how you’re vested in title, and what the legal description of the property is. So if you know the title/escrow company, provide that information to your QI up front.
Open Communication is Key
The most important thing is to communicate openly with your QI. If the closing is being moved up a week, let the QI know so they can have your documents prepared well in advance of the closing. They need to know of any date changes so they can effectively prepare.
- 1031 Hotline: If you have questions about information your QI needs or about starting a 1031 exchange, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2016 Copyright Jeffrey R. Peterson All Rights Reserved