An Accommodator, also referred to as a Qualified Intermediary (QI), is the central pillar of a 1031 "like-kind" exchange.
Section 1031 of the Internal Revenue Code (IRC) offers a great opportunity for real estate buyers to defer the capital gains tax liability associated with the sale of a business or investment asset. To qualify for 1031 "like kind" property exchange the entire transaction has to be done in accordance to the detailed rules, regulations and compliance issues set forth in the US (IRS) tax code.
Your first step in a 1031 exchange prior to selling your investment property is to find a reputable Qualified Intermediary (QI).
The Qualified Intermediary (QI), also known as a facilitator or exchange accommodator, serves a crucial function under the Internal Revenue Code (IRC). Choosing an Intermediary to facilitate the 1031 exchange is usually the first and one of the most important steps. The QI should be a company that works full-time to facilitate 1031 exchanges. The Internal Revenue Code requires that the person or entity serving as QI cannot be someone with whom the exchanger has had a former business or family relationship prior to the transaction. The IRS code is clear in the fact that a QI has to be an independent organization whose only contact with the exchanger is to serve them as a Qualified Intermediary.