A 1031 exchange is a tax deferred strategy that allows you to sell investment or business real estate and reinvest the proceeds into other qualifying real estate, while deferring certain capital gains taxes. It is a process with strict rules, timelines, and documentation requirements, which is why a Qualified Intermediary is used to administer the exchange.

Yes, for most exchanges you need a Qualified Intermediary to properly structure the transaction and to prevent you from taking possession or control of the sale proceeds. The Qualified Intermediary prepares the exchange documents, coordinates with closing parties, receives the proceeds, and releases funds for the replacement purchase.

If you provide the key transaction details, exchange setup can often be completed quickly, sometimes the same day. Speed depends on how soon you are closing and whether we have the right closing contacts and draft settlement statement.

The basics typically include your name and vesting information for the relinquished property, the property address and state, the estimated closing date and title or escrow contact, the approximate sale price and expected net proceeds, the exchange type, and your replacement property goals if known. If you have a draft settlement statement or closing disclosure, that helps us move faster.

No. We do not provide tax advice or legal advice. We provide exchange administration, document preparation, and closing coordination. We can explain the exchange process, timelines, and what documents are typically required, but your CPA or attorney should advise you on tax treatment, entity structure, and how the rules apply to your specific situation.

Day 0 is the closing date of your relinquished property sale. You generally have 45 days to identify replacement property or properties in writing and 180 days to complete the purchase of the replacement property or properties. These deadlines are strict and missing them can disqualify the exchange.

It starts on the date your relinquished property closes, not the date you list it, go under contract, or sign documents.

It generally ends 180 days after the relinquished property closing date, unless your tax filing deadline arrives earlier and you do not extend. Your CPA can advise on filing and extension timing.

Yes, many investors identify multiple options to protect the exchange. There are common identification rules used in practice, such as identifying up to three properties, or identifying more than three under certain value limits. We provide identification templates and help ensure your identification is documented properly, but your tax advisor should confirm which rule set you should rely on.

You can usually change your identification during the 45 day identification window. After day 45, changes are generally not allowed. We encourage identifying backup options early to reduce risk.

If you miss the 45 day identification deadline or the 180 day completion deadline, the exchange typically fails and the sale proceeds become taxable in the year of the sale. There are limited exceptions in rare circumstances. Your CPA should advise on tax consequences.

A 1031 exchange generally applies to real estate held for investment or for productive use in a trade or business. Common examples include rental properties, multifamily and single family rentals, commercial buildings and retail, industrial and warehouse properties, and land held for investment.

A primary residence generally does not qualify for a 1031 exchange because it is not held for investment or business use. There are other strategies that may apply to primary residences. Your CPA can advise.

Vacation homes can be tricky. Whether they qualify depends on how the property is held and used. Some investors follow widely used safe harbor style guidelines that focus on rental use and limited personal use. Your CPA should confirm eligibility for your facts.

A 1031 exchange generally applies to real estate held for investment or for productive use in a trade or business. Common examples include rental properties, multifamily and single family rentals, commercial buildings and retail, industrial and warehouse properties, and land held for investment.

A primary residence generally does not qualify for a 1031 exchange because it is not held for investment or business use. There are other strategies that may apply to primary residences. Your CPA can advise.

Vacation homes can be tricky. Whether they qualify depends on how the property is held and used. Some investors follow widely used safe harbor style guidelines that focus on rental use and limited personal use. Your CPA should confirm eligibility for your facts.

No. Like kind for real estate is broad. Many investors exchange from one type of real estate to another, as long as both are qualifying real estate held for investment or business use.

Yes. You can sell in one state and buy in another. State level tax considerations can vary, so discuss with your CPA.

Often, yes. Many investors use Delaware Statutory Trust or tenant in common interests as replacement property. These require extra coordination with sponsor deadlines and funding steps, and we support the exchange administration side.

We open and administer the exchange, prepare the required exchange documents, coordinate with closing parties, receive proceeds, provide identification templates, and disburse funds for replacement purchases. We also provide confirmations and a final documentation package for your records.

Yes. We work directly with your closing partners to align documents, settlement statement language, and funding steps.

Common documents include the exchange agreement and disclosures, assignments of sale and purchase contracts with notices, identification templates, wire instructions and disbursement authorizations, and a final accounting and exchange summary.

Identification is a written notice signed by you and delivered to the Qualified Intermediary by the identification deadline. It must clearly describe the potential replacement property or properties. We provide templates and confirm receipt.

Yes. A simultaneous exchange closes the sale and purchase on the same day. It still requires correct documentation and coordination.

Yes. This is the most common structure. You sell first, then buy within the exchange deadlines.

A reverse exchange is when you acquire the replacement property first and sell the relinquished property later. It is more complex and must be structured carefully, so reach out early if this is your plan.

An improvement exchange is when exchange proceeds are used to improve the replacement property during the exchange period. These exchanges require tight planning and milestone coordination.

Yes. Multi property exchanges are common for portfolio moves and consolidations. The key is clean tracking of proceeds, identification, and closing coordination.

A core requirement is that you cannot have actual or constructive receipt of the exchange proceeds. The Qualified Intermediary holds the funds and releases them for the replacement purchase.

Proceeds are held under the exchange agreement and are disbursed only for eligible exchange purposes. We provide confirmations and maintain a clear audit trail.

We coordinate wire timing and payee details with the title or escrow team. Disbursements follow the authorization process in the exchange agreement.

Yes. If you do not reinvest all proceeds or do not replace enough debt, the non reinvested portion may be taxable. Your CPA should advise.

Boot is generally value received that is not like kind real estate, such as cash taken out of the exchange or certain debt relief not offset by new debt or additional cash. Boot can create taxable gain. Your CPA should advise on calculation and impact.

Refinancing can impact timing and tax outcomes. Your CPA should advise on the best approach and we will align administration to that plan.

Often, yes. Generally the same taxpayer who sells must buy. Entity changes can complicate compliance, so involve your CPA or attorney early.

It depends on how the entity is treated for tax purposes and whether the same taxpayer requirement is satisfied. Your CPA should advise.

Partnership situations are complex and typically require planning before the sale closes. Your CPA or attorney should advise and we will coordinate documents accordingly.

Changing ownership can impact tax outcomes and compliance. Your CPA should advise.

Common issues include setting up the exchange after closing, missing deadlines, submitting incorrect identification, having incorrect settlement statement language, receiving proceeds directly, or failing to close on replacement property within the exchange period.

We coordinate early with the closing team, provide a checklist of required steps, and confirm document language so you are not scrambling on closing day.

We use controlled verification steps and recommend independent verification of wire instructions using a known trusted phone number. Always confirm wire details before sending funds.

That is why many investors identify backups. If you cannot close on a replacement property within the exchange period, the exchange may fail and proceeds may become taxable. Your CPA should advise on the impact.

Pricing depends on exchange type and complexity. Standard delayed exchanges are typically less expensive than reverse or improvement exchanges. The fastest way to get accurate pricing is to complete the intake with your timeline and property details.

Exchange setup, document package, closing coordination, receipt and disbursement of proceeds, identification templates and receipt confirmations, and a final exchange summary and documentation package.

Most inquiries receive a response the same day or within one business day during normal hours. If you are closing soon, include your closing date to prioritize your request.

Click Start Your Exchange to complete the intake and upload any draft closing documents. If you prefer, schedule a call and we will walk through your timeline and next steps.