1031.Exchange INTELLIGENCE NETWORK
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EXCHANGE MECHANICS

Qualified trust

Also called: 1031 qualified trust

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PLAIN-ENGLISH DEFINITION

A trust arrangement meeting specified safe-harbor requirements for deferred exchange funds.

What it means in practice.

A qualified trust can be used under the regulations to restrict the taxpayer’s rights to exchange proceeds.

Why it matters.

The exact structure should be reviewed by tax counsel and the parties administering the exchange.

Additional notes.

A qualified trust can be used under the regulations to restrict the taxpayer’s rights to exchange proceeds.

PRIMARY / REFERENCE SOURCES

Read the source material.

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

Related definitions.

Exchange MechanicsQualified escrow accountAn escrow arrangement meeting specified safe-harbor requirements that can restrict the taxpayer’s access to 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.
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