SECTION 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 Section
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 section
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 section
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; T.D. 8535, 59 FR 18747, April 20,
1994]