An accommodating party is an intermediary in a Section 1031 exchange, often utilized in delayed (tax-free) exchanges to temporarily hold money or property to facilitate the exchange.
A Deferred Exchange, often termed as a Delayed or Tax-Free Exchange, refers to a real estate transaction facilitated under Section 1031 of the Internal Revenue Code, allowing the deferral of capital gains taxes on the sale of an investment property, provided another like-kind property is acquired within a specific timeframe.
A Delayed (Tax-Free) Exchange refers to a transaction where an investment property is traded for another like-kind property, allowing for the deferment of capital gains taxes as stipulated by IRS guidelines.
Under Section 1031 of the Internal Revenue Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free.
A Qualified Intermediary (QI) is a person or entity authorized to hold funds to facilitate a Section 1031 Exchange, enabling property owners to defer capital gains taxes, particularly in delayed exchanges.
