About Rocky Mountain 1031 Exchange
Rocky Mountain 1031 Exchange is dedicated to being the most professional facilitator
for all of your exchange needs. 1031 Exchanges are all we do. We specialize in meeting
your needs in a timely and professional manner for a very reasonable fee.
Rocky Mountain 1031 Exchange has selected a prime location next to major title companies
and realtors and has implemented state of the art networking to ensure that all
of your exchange data is protected from business disruptions as well as protecting
the confidentiality of your information.
Rocky Mountain 1031 Exchange is a wholly owned subsidiary of The Bank Holdings,
a publicly traded SEC registered bank holding company, NASDAQ symbol TBHS. As such,
we know how to take care of your exchanges and your confidentiality.
Call us at 866-554-1031 or send us an E-mail.
The Role Of The Qualified Intermediary
The role of the Qualified Intermediary is essential to completing a successful and
valid delayed exchange. The Qualified Intermediary is the glue that puts the buyer
and seller of property together into the form of a 1031 Exchange. Where such an
intermediary (often called an exchange facilitator) is used, the intermediary will
not be considered the agent of the taxpayer for constructive receipt purposes notwithstanding
the fact that he may be an agent under state law and the taxpayer may gain immediate
possession of the money or property under the laws of agency.
In order to take advantage of the qualified intermediary "safe harbor" there must
be a written agreement between the taxpayer and intermediary expressly limiting
the taxpayer's rights to receive, pledge, borrow or otherwise obtain the benefits
of the money or property held by the intermediary.
A qualified intermediary is formally defined as a person who is not the taxpayer
or a disqualified person who enters into a written agreement (the "exchange agreement")
with the taxpayer and, as required by the exchange agreement, acquires the relinquished
property from the taxpayer, transfers the relinquished property, acquires the replacement
property, and transfers the replacement property to the taxpayer. The qualified
intermediary does not actually have to receive and transfer title as long as the
legal function is maintained.
The intermediary can act with respect to the property as the agent of any party
to the transaction and further, an intermediary is treated as entering into an agreement
if the rights of a party to the agreement are assigned to the intermediary and all
parties to the agreement are notified in writing of the assignment on or before
the date of the relevant transfer of property. This provision allows a taxpayer
to enter into an agreement for the transfer of the relinquished property (i.e.,
a contract of sale on the property) and thereafter to assign his rights in that
agreement to the intermediary. Providing all parties to the agreement are notified
in writing of the assignment on or before the date of the transfer of the relinquished
property, the intermediary is treated as having entered into the agreement and,
upon completion of the transfer, as having acquired and transferred the relinquished
property.
There are no licensing requirements for Intermediaries. An intermediary needs to
be a qualified person as defined by the Internal Revenue Code in order to be qualified.
The Code prohibits certain "agents" of the taxpayer from being qualified. Accountants,
attorneys and realtors who have served taxpayers in their professional capacities
within the prior two years are disqualified from serving as a Qualified Intermediary
for a taxpayer in an exchange.