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Qualified Intermediary Fees

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ProfessionalTax & Financial PlanningInvesting

Definition

Charges by qualified intermediaries facilitating 1031 exchanges, typically 0.5-1% of exchange value.

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About this term

Qualified intermediaries charge for facilitating 1031 exchanges. Fees typically $500-$5,000 depending on complexity. Reduces exchange net proceeds. Critical to exchange success through compliance. Professional services justify costs. Escrow services, accounting, legal coordination. Fees vary by facilitator experience and services. Compare fees and services. Essential cost of tax deferral benefit. Fees are deductible business expense. Professional quality justifies fees.

Pro Tip

Compare QI fees; services and quality vary significantly.

Example

Qualified intermediary fees of $2,500 were paid from exchange proceeds.

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