My qualified intermediary holds all the sale funds — doesn't that solve the FIRPTA withholding problem?
In my exchange, the qualified intermediary receives all the net sale proceeds and holds them until I buy the replacement. So I never touch the money. Doesn't that mean there's nothing to withhold FIRPTA on, since the cash goes straight to the QI and not to me? My buyer seems nervous about it and I don't understand why.
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