1031.Exchange INTELLIGENCE NETWORK
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EXCHANGE MECHANICS

Qualified escrow account

Also called: qualified escrow · 1031 escrow

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PLAIN-ENGLISH DEFINITION

An escrow arrangement meeting specified safe-harbor requirements that can restrict the taxpayer’s access to exchange funds.

What it means in practice.

The deferred-exchange regulations provide safe harbors involving qualified escrow accounts and qualified trusts in addition to qualified intermediaries.

Why it matters.

This is less commonly discussed publicly than the QI safe harbor but is part of the federal framework.

Additional notes.

The deferred-exchange regulations provide safe harbors involving qualified escrow accounts and qualified trusts in addition to qualified intermediaries.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/publications/p544
CONNECTED LANGUAGE

Related definitions.

Exchange MechanicsQualified trustA trust arrangement meeting specified safe-harbor requirements for deferred exchange funds.Core 1031Constructive receiptA tax concept under which money may be treated as received even if it is not physically in the taxpayer’s hands, because it is available or controlled by the taxpayer.Core 1031Exchange fundsSale proceeds being held and deployed as part of the exchange structure.
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