When should a qualified intermediary be contacted?

Before the property is listed or under contract, not after closing or during escrow. A qualified intermediary must be in place to facilitate the exchange under IRS rules.

When does the 45-day identification period start?

The day after the relinquished property closes, not when the property is listed or goes under contract.

What happens if no replacement property closes?

If no replacement property is acquired within the 180-day exchange period, the exchange fails and the proceeds become taxable.

What is boot in a 1031 exchange?

Boot is any non-like-kind property or cash received that does not meet tax-free criteria and is therefore subject to capital gains tax. It typically takes the form of cash, an installment note, debt relief or personal property, valued at fair market value.

Can a property be exchanged across state lines?

Yes. The firm notes that tax treatment varies from state to state and recommends reviewing the relevant state's tax policy as part of the decision.

Can one property be exchanged for several?

Yes. Whatever the number of properties on either side, the requirement is that the exchange goes across or up in value, equity and mortgage.

1031 exchange QIs

Sparks Exchange Solutions

Sparks Exchange Solutions is a qualified intermediary for IRC Section 1031 like-kind exchanges, working with investors nationwide from an office on Blue Ridge Highway in Blairsville, Georgia. It handles forward or delayed exchanges, reverse exchanges, build-to-suit or improvement exchanges, and simultaneous exchanges.

The firm's guidance is to engage a qualified intermediary before the relinquished property is listed or under contract, not during escrow or after closing, and its FAQ walks through the mechanics: the 45-day identification period starts the day after the relinquished property closes, the exchange fails and proceeds become taxable if nothing is acquired within the 180-day period, and any value, equity or debt not replaced creates taxable boot. The site states that all funds are FDIC insured. Tools on the site include a capital gains tax calculator with state-specific versions covering Georgia, South Carolina and Tennessee, links to IRS documents, qualifying property guidance and an "Ask CES" question form.

The company describes a team with 20+ years of combined experience across 1031 exchange, finance, real estate and banking, led by a Certified Exchange Specialist whose background is in community banking. Team affiliations listed include the Federation of Exchange Accommodators and regional Realtor associations.

Fees are not published on the site. Because a qualified intermediary holds the proceeds between closings, ask which entity holds the funds, at which institution, how the account is titled, and what the fee is for each leg of the exchange before signing.

Best for

Investors who want a small, hands-on qualified intermediary for a forward, reverse or build-to-suit exchange and will ask for fees and fund-holding details in writing. Not a fit for buyers who need a published institutional fee schedule.

What they do

Forward and delayed 1031 exchanges
Reverse 1031 exchanges
Build-to-suit and improvement exchanges
Simultaneous exchanges
Qualified intermediary custody of exchange proceeds
Capital gains tax estimating tools
Qualifying property and IRS document guidance

Details

Attribute	Value
Exchange types	Forward, Reverse, Improvement

What stands out

States that all exchange funds are held in FDIC-insured accounts.
Describes a team with 20+ years of combined experience in 1031 exchange, finance, real estate and banking.
Publishes a capital gains calculator with state-specific versions, including Georgia, South Carolina and Tennessee.
Led by a Certified Exchange Specialist whose background is in community banking.

Common questions

When should a qualified intermediary be contacted?: Before the property is listed or under contract, not after closing or during escrow. A qualified intermediary must be in place to facilitate the exchange under IRS rules.
When does the 45-day identification period start?: The day after the relinquished property closes, not when the property is listed or goes under contract.
What happens if no replacement property closes?: If no replacement property is acquired within the 180-day exchange period, the exchange fails and the proceeds become taxable.
What is boot in a 1031 exchange?: Boot is any non-like-kind property or cash received that does not meet tax-free criteria and is therefore subject to capital gains tax. It typically takes the form of cash, an installment note, debt relief or personal property, valued at fair market value.
Can a property be exchanged across state lines?: Yes. The firm notes that tax treatment varies from state to state and recommends reviewing the relevant state's tax policy as part of the decision.
Can one property be exchanged for several?: Yes. Whatever the number of properties on either side, the requirement is that the exchange goes across or up in value, equity and mortgage.