Hi @Ben Lindquist, The 1031 Exchange Qualified Intermediary is a crucial part of any successful 1031 Exchange transaction.

It’s a good idea to work with a qualified intermediary and a tax advisor to ensure everything is structured properly and you’re clear on any tax implications.

This transaction involves the sale of your relinquished property through a Qualified Intermediary.

Hope someone expert in Real Estate can guide me1)Who act like qualified intermediary?

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

Work with a 1031 intermediary to ensure compliance and a smooth process.Key questions to ask yourselfWhat’s your long-term goal?

Any recommendations for a qualified Intermediary?

I am worried about having an intermediary taking control of my property and renting to tenants I haven't screened.

What are fees associated with the Qualified Intermediary holding onto this money?