GLOSSARY OF TERMS - Q

The actual contract or agreement between an investor and the Exchange Accommodator Titleholder that outlines the terms for parking property pursuant to Revenue Procedure 2000-37.

The IRS requires the owner (the exchanger) of the relinquished property not be permitted to have control of the proceeds from the sale of their property (constructive receipt). To comply with this requirement it is necessary to contract a Qualified Intermediary (QI), or a similarly qualified party, to hold the proceeds and to 1) acquire the relinquished property from the taxpayer and transfer the property to the new buyer and 2) acquire the replacement property and transfers the replacement property to the taxpayer.

An investor must intend to use the property in their trade or business, to hold the property for investment or to hold the property for income production in order to satisfy the qualified use test.