When doing a 1031 exchange, you must have a Qualified Intermediary (QI) involved in the process. A QI is an independent third-party required by the IRS to facilitate the exchange. The QI may not be the taxpayer, a lineal descendant of the exchanger, or an agent of the taxpayer. Taxpayer agents include the realtor, attorney, tax advisor, banker, CPA, and employee. Learn more about the role of the QI here.
When choosing a QI, a good thing to keep in mind is choosing a QI with a Certified Exchange Specialist® (CES®) on staff. The CES® designation merits knowledge and professionalism in the 1031 exchange industry. To receive the designation, candidates must be knowledgeable of the exchange rules and ethics. They must show competency in performing the critical activities of a QI. An on-staff CES® is a great advantage when deciding which QI should complete your exchange.
The Federation of Exchange Accommodators (FEA) awards the CES® designation. The FEA is an elective continuing education program. Individuals receiving their CES® designation must pass a comprehensive examination. The examination tests the candidates on 1031 exchange laws and regulations. Candidates must meet specific work experience criteria and stay current with ongoing education. The education requirements are set by the CES® Council.
Why Choose Midland 1031
When you choose a QI that has a CES® on-staff and is an FEA member, you are choosing the best. This QI commits to the code of ethics established by the CES® and FEA. They receive up-to-date information on legislative, tax, and regulatory issues that could affect your exchange. They are the most knowledgeable exchange intermediaries to assist in your tax-deferred exchange.
Midland 1031 has served clients nationwide for nearly 30 years. We are a proud member of the FEA and have two CES® on staff. To start your 1031 exchange or to learn more, call us at 239-333-1031. Or, visit the Midland 1031 website here.