[Code of Federal Regulations]
[Title 26, Volume 11]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1031(b)-2]

[Page 85]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1031(b)-2  Safe harbor for qualified intermediaries.

    (a) In the case of simultaneous transfers of like-kind properties 
involving a qualified intermediary (as defined in Sec. 1.1031(k)-
1(g)(4)(iii)), the qualified intermediary is not considered the agent of 
the taxpayer for purposes of section 1031(a). In such a case, the 
transfer and receipt of property by the taxpayer is treated as an 
exchange.
    (b) In the case of simultaneous exchanges of like-kind properties 
involving a qualified intermediary (as defined in Sec. 1.1031(k)-
1(g)(4)(iii)), the receipt by the taxpayer of an evidence of 
indebtedness of the transferee of the qualified intermediary is treated 
as the receipt of an evidence of indebtedness of the person acquiring 
property from the taxpayer for purposes of section 453 and Sec. 
15a.453-1(b)(3)(i) of this chapter.
    (c) Paragraph (a) of this section applies to transfers of property 
made by taxpayers on or after June 10, 1991.
    (d) Paragraph (b) of this section applies to transfers of property 
made by taxpayers on or after April 20, 1994. A taxpayer may choose to 
apply paragraph (b) of this section to transfers of property made on or 
after June 10, 1991.

[T.D. 8346, 56 FR 19937, May 1, 1991, as amended by T.D. 8535, 59 FR 
18749, Apr. 20, 1994]