Question

The ______________ is responsible for preparing all of the appropriate documentation for a 1031 exchange transaction, securing the funds in an escrow account until the exchange is completed and submitting a 1099 form to the taxpayer and the IRS for any gr.

Answer 1

Answer: Qualified intermediary.

Explanation:

Qualified intermediary is someone that can act as a middle person qualified under certain conditions of the United States IRS (Internal Revenue Service) to take up such role. Someone who is qualified to be a qualified intermediary must not be the exchangor.

Under the IRS, section 1031, parents, siblings or children can act as ones qualified intermediary.