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.
Compensation in real estate refers to money or other property paid to individuals or entities in exchange for services rendered, goods provided, or contractual obligations fulfilled. It encompasses wages, commissions, payment for real estate contracts, and property exchanges.
A multiple exchange is a tax-free exchange in which more than one property or more than two parties are involved. This type of exchange allows for a series of transactions that enable parties to swap properties or interests to achieve their desired outcomes without generating a taxable event.
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.
