In a deferred exchange, you need an unrelated party to hold the proceeds from the sale of your relinquished property. The IRS provides a safe harbor known as a Qualified Intermediary (QI) to hold these proceeds.  A qualified intermediary plays a key role in each exchange transaction.  The QI drafts all of the exchange documentation, assists in the calculation and meeting of timelines, provides strategic guidance in meeting the exchange requirements for each transaction, and secures the taxpayer’s funds during the exchange. With all of these key roles, it is important to find a QI who has the expertise and integrity to exceed your every need.

Banker Exchange, LLC and its predecessor, Boyd Corporation, have been focused on providing these services to Clients since 1992. We have seen almost every twist imaginable and have the depth of experience to respond quickly to any problems which may arise during your Exchange

One of the first rules of a Reverse Exchange is that a taxpayer may not take title to the Replacement Property prior to her sale of Relinquished Property.  To accomplish this, the Service allows the taxpayer to enter into an agreement, known as a Qualified Exchange Accommodation Agreement with an Exchange Accommodation Titleholder, an EAT. This EAT must be unrelated to the taxpayer outside of the QEAA.  The EAT purchases Replacement Property for the benefit of the taxpayer and holds it for up to 180 days until the Relinquished Property is sold.  Then the EAT transfers the Replacement Property to the taxpayer.

Because the EAT takes title to the Replacement Property and must manage it for the taxpayer during the exchange, it is important that the EAT understand the IRS’s guidance on this type of transaction.  Our team has been facilitating these transactions since 1995, almost six years before the IRS issued official guidance on the matter. Since then we have completed all types and sizes of Reverse Exchange transactions, and can help complete your exchange successfully as well.

Much like a Reverse Exchange, your QI, or another unrelated party, must take title to Replacement Property if you are going to construct improvements. Any construction completed before transfer to you will qualify as Replacement Property. Because you only have 180 days between the sale of Relinquished Property and purchase of Replacement Property, it is important to know that your QI has the capacity and knowledge to help get things done.

We have served as title holder to construction projects ranging from automotive showrooms to new office buildings.  Whether the construction is part of a Deferred Exchange or a Reverse Exchange, we can coordinate construction loan closings, property purchases and work with you in hiring and overseeing contractors on each project. These services are in addition to our traditional Qualified Intermediary role in the transaction ensuring that all of the requirements of Section 1031 are respected.