What about the money?

admin  /   January 25, 2019

The most important role of the qualified intermediary is that it holds the proceeds of sale pending reinvestment in new property.  The Internal Revenue Service takes the position that if the seller receives (or has direct or indirect use of or control over) the proceeds of sale, then there should be tax.  By arranging for the qualified intermediary to hold the money, the taxpayer never receives the cash and therefore the transaction can be viewed as an exchange.

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