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DUTIES OF A QUALIFIED INTERMEDIARY » EXCHANGE SERVICES

DUTIES OF A QUALIFIED INTERMEDIARY

The duties, responsibilities and challenges involved with operating a Qualified Intermediary business include:

  • A thorough familiarity and knowledge of the regulations
  • Ability to provide documentation in compliance with the regulations
  • An understanding of all of the elements of the Exchange
  • Knowledge and ability to perform in compliance with the Exchange agreement and the regulations.
    In addition, the Qualified Intermediary must:


In addition, the Qualified Intermediary must:

  • Preserve the integrity of the Exchange through preparation of proper documentation and complete the Exchange in compliance with the regulations.
  • Make sure the Safe Harbors, if used, are not violated and therefore cease to apply.
  • Interpret and apply the regulations to complex transactional issues.
  • Provide proper and accurate accounting to the taxpayer.
  • Respond to the short time constraints prevalent in Exchanges.
  • Manage the Exchange funds in a prudent, safe manner that incorporates sound business practices.