Exchange Authority LLC

About The Exchange Authority

The Exchange Authority has been in business for over 20 years and has maintained a high level of excellence, making customer service and the security of clients’ funds our top priority.  Our experienced and knowledgeable team will help guide you and your tax advisors through the often-complex laws and regulations regarding 1031 exchange transactions, helping to ensure a smooth and worry-free transaction.  In addition, all exchange funds are deposited in segregated escrow accounts at Fidelity Bank where all deposits are 100% insured through the FDIC and the Depositors Insurance Fund. 
What is a Qualified Intermediary

A Qualified Intermediary (QI) performs the essential functions to allow a 1031 exchange to qualify under the “safe harbor” as outlined in Treasury Regulation 1.1031(k)-1(g)(4).  In order to have a valid 1031 exchange, the exchanger may not actually or constructively receive the proceeds from the relinquished property sale.  A QI, an independent third party to the transaction who is a non-disqualified person, receives the proceeds and holds the funds in escrow until the client is able to identify and subsequently purchase a replacement property.  The QI then delivers the funds directly to the closing agent for the replacement property purchase.  

In addition, the Exchange Authority acting as QI will:
  • Advise and consult with you and your tax advisors regarding the structure and implementation of your 1031 exchange
  • Prepare the necessary exchange documentation for the transaction to be in compliance with applicable Internal Revenue Codes, Treasury Regulations and Rulings
  • Track and send reminders regarding the 45-day identification period and 180-day exchange period
  • Provide a proper and accurate accounting and summary of the transaction to be used by you and your tax advisor for tax preparation

The following infographic provides a helpful overview of the exchange process.

If you have questions, we are here to support you. We provide consulting, answer questions and walk you through the exchange process. Call us at 978-443-6061 or email [email protected]

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