safety & security» news & events     our philosophy    experience Do Not Jeopardize Your Exchange - Work With The Authority The non-recognition provisions of IRC §1031 and applicable regulations stipulate, that a taxpayer must not have actual or constructive receipt of money or other non-like-kind property until after receipt of all of the like-kind property the taxpayer is entitled to receive. The regulations for delayed Exchanges further stipulate that the money and other non-like-kind property must be held by a party who is not a disqualified person within the meaning of the regulations. Therefore, any taxpayer desiring preferential treatment pursuant to IRC §1031 must agree that the proceeds from the sale of the relinquished property will be held by a party who is often unknown by the taxpayer, is not an agent of the taxpayer or a related party. This fact concerns many taxpayers, and rightly so. "“Exchange Authority takes the risk and difficulty out of a complex transaction.  They make it easy to understand what is happening and why.” -Mike Grandmaison, CPA To eliminate this concern, Exchange Authority has established the following procedure for holding the taxpayer's money. Proceeds from the sale of the relinquished property will be made payable at the time of closing directly to Fidelity Bank, a Massachusetts Chartered Co-operative Bank and not to Exchange Authority. Funds held by a Massachusetts Chartered Co-operative Bank are insured in full without limit or exception by the FDIC and the Share Insurance Fund.  The funds will be held by Fidelity Bank as Escrow Agent for the Exchange subject to specific written and signed escrow instructions which limit account access as follows: Funds may be withdrawn from the account ONLY upon receipt by the bank of written instructions signed by Exchange Authority and affirmed in writing by the taxpayer. Written instructions to the bank must contain the exact amount of funds to be withdrawn, the name of the payee and appropriate forwarding instructions. Our Qualified Intermediaries understand all the complexities involved in IRC §1031 transactions.  We take the time to answer every question and handle each concern.  Contact us today to learn more about how we can help. Exchange Authority, LLC is a wholly owned subsidiary of Fidelity Bank whose parent company is Fidelity Mutual Holding Company