CPA-led 1031 exchange guide
1031 Exchange Qualified Intermediary
The Qualified Intermediary is the only safe-harbor mechanism most investors will use to keep their hands off the sale proceeds during a 1031 exchange. Here's exactly how the QI workflow runs, from contract assignment to final funding.
Before the relinquished closing
i1031 prepares the Qualified Intermediary agreement, assignment of the sale contract, notice to the buyer, and wiring instructions for the closing agent. Brandon focuses on the planning questions around the exchange.
Day 0 — sale closes
Proceeds wire to the QI. You sign the exchange documents at or before closing. From this moment, the 45-day ID clock and 180-day completion clock both start running.
Days 1–45 — identification
You evaluate replacement candidates. By midnight Day 45 a written, signed identification is delivered to i1031, which logs and acknowledges it as the Qualified Intermediary.
Days 46–180 — replacement closing
When a replacement property is ready to close, i1031 coordinates the purchase-contract assignment and wires exchange funds directly to the closing. Any unused funds remain subject to the exchange agreement and applicable release rules.
Frequently Asked Questions
Can I change my identification after Day 45?
No. After midnight on Day 45 the list is locked. You can only close on properties already on the list.
What happens if I don't close anything?
Unused exchange funds are returned to you and the gain becomes taxable for that year — no penalty beyond the tax itself.