Colorado: sunrise report on qualified intermediaries

2008 Sunrise Review: Qualified Intermediaries first defines the profession: a "Qualified Intermediary (QI) (also known as an Exchange Facilitator) is a neutral third party who assists a property owner in deferring capital gains tax, to be paid to the Internal Revenue Service (IRS), by holding the sale proceeds of an investment property, then transferring the funds for the purchase of a new investment property." The report concludes that evidence of harm to the public did not result from lack of education of QI practitioners, but from theft or inappropriate investment of client funds. The recommendation to the legislature is for the establishment of a QI registration program and for additional requirements such as bonding, dual signatures for transferring funds, and criminal background checks. Nevada is the only state that currently regulates QIs, but it has not yet begun issuing licenses. Read the report.