The Qualified Intermediary
The Regulations create four Safe Harbors whose use will result in the determination that the taxpayer is not in actual or constructive receipt of money or other property for purposes of IRC Sec. 1031. One of these Safe Harbors is the use of a Qualified Intermediary. There is a high degree of flexibility in structuring exchanges with an intermediary. When an intermediary is used, care should be exercised in selecting one who will satisfy the practical consensus of the taxpayer and ensure that the transaction qualifies under IRC Sec. 1031.