1031 exchange QIs
Iowa Equity Exchange
Iowa Equity Exchange is a qualified intermediary for Section 1031 exchanges, working from West Des Moines, Iowa and describing its service as nationwide. It is a small, independent firm focused solely on Section 1031 exchanges for investors, land owners, and business owners.
As qualified intermediary it works under a written agreement with the taxpayer: it receives the funds from the sale of the relinquished property, holds them in trust, and releases them when the replacement property closes, so the client avoids actual or constructive receipt of the proceeds. Its published material covers standard delayed exchanges alongside reverse and improvement or construction exchanges, and narrower questions such as related-party issues, dealer property held for sale, refinancing before or after an exchange, prorations and credits, and converting investment property to a principal residence.
The firm belongs to the Federation of Exchange Accommodators and notes that only a couple hundred qualified intermediary firms nationwide are members. Its founder has earned the Certified Exchange Specialist designation. An office line and a toll-free line are both published.
Fees and the arrangements under which exchange funds are held are not published, and two different West Des Moines street addresses appear on the site, so confirm the fee schedule and the current office before sending funds.
Best for
Investors, farmland owners, and business owners who want a small firm doing nothing but Section 1031 exchanges, including reverse and improvement structures, and who will ask directly about fees and how funds are held.
What they do
- Delayed (standard) 1031 exchanges
- Reverse exchanges
- Improvement and construction exchanges
- Qualified intermediary document preparation
- Holding and disbursement of exchange proceeds
- Guidance on related-party and dealer property issues
- Farmland and business asset exchange guidance
Details
| Attribute | Value |
|---|---|
| Memberships | Federation of Exchange Accommodators member, Certified Exchange Specialist (founder) |
| Exchange types | Forward, Reverse, Improvement |
What stands out
- Member of the Federation of Exchange Accommodators, which the site says only a couple hundred qualified intermediary firms nationwide belong to.
- Its founder has earned the Certified Exchange Specialist designation.
- Works only on Section 1031 exchanges, for clients nationwide, from West Des Moines, Iowa.
Common questions
- What is an IRC Section 1031 tax-deferred exchange?
- It lets a taxpayer sell property held for investment or for productive use in a trade or business and reinvest the proceeds in like-kind property without paying capital gain tax at that point. The reasoning is that the investment itself has not changed, only the form of the investment, so taxing the owner on what amounts to a paper gain would not be fair.
- What property qualifies for a 1031 exchange?
- Real property held for investment or used in a trade or business qualifies, and US real property is like-kind to virtually all other US real property, from raw land and farmland to apartments, offices, and shopping centers. Stocks, bonds, partnership or LLC interests, personal residences, and property held as inventory or bought for quick resale do not qualify. Foreign real estate is not like-kind to US real estate, though it is like-kind to other foreign real estate.
- What does the qualified intermediary actually do?
- Under a written agreement, the qualified intermediary receives the funds from the sale of the relinquished property, holds them in trust, and releases them when the replacement property is ready to close. That prevents the taxpayer from taking actual or constructive receipt of the proceeds, which is one of the requirements of a valid exchange, and keeps the transaction inside the safe harbor the IRS has provided.