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Exchange Addendum to Contract Tax Exchange Section 1031 Form

Exchange Addendum to Contract Tax Exchange Section 1031 Form

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Instructions and help about Exchange Addendum To Contract Tax Exchange Section 1031

If you're thinking about doing a 1031 Exchange, one of the very most important terms that you need to know is "Qualified Intermediary." Yes. Let me say it again, because it's a big word, sometimes known as a "Q.I." But it's "Qualified Intermediary." Who is a "Qualified Intermediary?" Your funds go directly from your closing officer into the funds of the Qualified Intermediary. Why do your funds go to the Qualified Intermediary? That's because you can't touch the money. It can't go to you. It can't go to your attorney. It can't go into your bank account. It must go to a Qualified Intermediary and the Qualified Intermediary later on sends your funds to buy your next property. You choose it. You go in the contract, they send the money. This way, you never touch the funds.

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