1031 exchange QIs
1031 Real Estate Exchange Specialist
1031 Real Estate Exchange Specialist is a qualified intermediary based in Durango, Colorado, serving real estate investors who are selling investment property and reinvesting the proceeds while deferring capital gains tax.
The firm handles forward, reverse, construction, and reverse-construction exchanges. It contacts the closing team on each transaction and checks that every required document is signed and completed correctly. For a reverse or construction exchange, the qualified intermediary holds the deed to the replacement property while the relinquished property is sold or the improvements are made within the 180-day period.
The business started in 1990 and describes itself as a small team that has now completed exchanges in all 50 states, helping thousands of clients over more than 30 years. It publishes free education material, including a 1031 e-book, a tax liability calculator, and an extensive FAQ library.
Unusually for a qualified intermediary, the full fee schedule is published: $1,150 for a one-sale, one-buy forward exchange, $4,500 for a reverse, construction, or reverse-construction exchange, and $400 for each additional buy or sale. Fund-security arrangements are not detailed on the site.
Best for
Investors who want a published, flat fee for a straightforward forward exchange, or a small team handling a reverse or construction exchange. Less suited to buyers who need a large institutional intermediary with published fund-security terms.
What they do
- Forward 1031 exchanges
- Reverse 1031 exchanges
- Construction (improvement) exchanges
- Reverse-construction exchanges
- Qualified intermediary document preparation
- Coordination with closing teams on both sides
- Capital gains tax liability calculator
- Free 1031 exchange e-book and education library
Details
| Attribute | Value |
|---|---|
| Founded | 1990 |
| How they charge | Published fees: $1,150 for a one-sale, one-buy forward exchange; $4,500 for a reverse, construction, or reverse-construction exchange; $400 for each additional buy or sale. |
| Exchange types | Forward, Reverse, Improvement |
| Fee range | $1k–$2k |
What stands out
- Has completed 1031 exchanges in all 50 states.
- Publishes a flat $1,150 fee for a one-sale, one-buy forward exchange.
- Reverse, construction, and reverse-construction exchanges each carry a published $4,500 standard fee.
- Has been performing exchanges for more than 30 years, since starting in 1990.
Common questions
- Is a qualified intermediary required for a 1031 exchange?
- Yes. To qualify for the tax deferral, a QI must be used. A disqualified person cannot serve as the QI, which includes the taxpayer, the taxpayer's family members, and anyone who has acted as the taxpayer's agent within the previous two years.
- How long is there to complete a 1031 exchange?
- A 1031 exchange must typically be completed within 180 days from the date of sale of the original property, with the replacement property identified within the first 45 days.
- Which type of exchange fits which situation?
- A forward exchange, the simplest and most common, sells the relinquished property and then buys the replacement. A reverse exchange buys the replacement first, usually with a short-term note or cash, and the QI holds the deed until the relinquished property sells. A construction exchange is used to build or improve the replacement property, with all exchange funds used within 180 days. A reverse-construction exchange combines the two.
- What is the 200% rule for a 1031 exchange?
- The 200 percent rule is a safe harbor for identifying replacement property. A taxpayer can identify any number of replacement properties as long as their total fair market value does not exceed 200 percent of the fair market value of the relinquished property.
- Can cash or debt be taken out during an exchange?
- Yes, but cash or debt received as part of the exchange is considered boot and is subject to capital gains taxes. Using cash or debt to pay any remaining difference can help minimize the amount of boot received.