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qualified intermediary

   Also found in: Acronyms, Wikipedia 0.02 sec.
qualified intermediary

A person or entity permitted to hold funds in a 1031 exchange, which is a vehicle for selling a property and buying a replacement property, thereby deferring payment of taxes until sale of the second property. Anyone may be a qualified intermediary as long as that person does not fit the description of a disqualified person.Disqualified persons are those who are the agent of the taxpayer at the time of the exchange or who acted as an agent for the seller at any time in the 2 years prior to the exchange.See 1031 exchange for the mechanics of the transaction.



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