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1031 EXCHANGE CALCULATOR
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How it works

Hassle-Free 1031 Exchanges

In a nutshell

A 1031 exchange allows you to sell one investment property and reinvest in another, all while deferring capital gains tax. The concept is simple: Sell, reinvest, and keep your money working for you instead of paying a large chunk to the IRS. However, the IRS has specific rules and timelines that must be followed precisely to qualify for this tax deferral.

That’s where we come in. We navigate the 1031 exchange process for you, ensuring compliance and maximizing your investment potential.

1031 Exchange Process

0
Day
1
Identificati on Period
List Relinquished Property
0
Day
2
Identificati on Period
Identify Qualified Intermediary
0
Day
3
Identificati on Period
Sell Relinquished Property
Sales Proceeds
45
Day
4
Exchange
Period
Identify Replacement Property
Qualified
Intermediary
180
Day
5
Receive Replacement Property
Closing Funds

Important terms

  • Like-Kind Property: Real estate held for investment or business use, exchangeable for similar property.
  • Relinquished Property: The property you're selling in the exchange.
  • Replacement Property: The new property you're acquiring in the exchange.
  • Qualified Intermediary (QI): A neutral third party who facilitates the exchange and holds funds.
  • 45-Day Identification Period: The timeframe to identify potential replacement properties after selling.
  • 180-Day Exchange Period: The maximum time allowed to complete the entire exchange process.

Streamlining Your
1031 Exchange

Sale Period
Designation period
Day 0 - Day 45
Purchase period
Day 45 - Day 180

1. Identify a QI

The IRS states you need a Qualified Intermediary (QI) to complete your exchange. That’s us. You’ll sign an Exchange Agreement which officially designates us as your QI.

2. Open your exchange

  • Once you have a contract to sell your property, open your 1031 exchange with us.
  • We will create our Assignment of Contract Rights and Notice of Assignment needed to assign us to your contract to serve as your qualified intermediary. Remember, you must set this up with us before your property sale closes.
  • You’ll need to inform the buyer of the exchange and the buyer will sign a form acknowledging the exchange.
  • The qualified intermediary (that's us) will be assigned into the contract.

3. Closing the sale

We'll help coordinate with all parties and prepare the necessary documents. When the sale closes, we'll hold your proceeds in a secure escrow account.

You now have 180 days to close on a replacement property.

Identify replacement properties

  • You have 45 days from closing your sale to identify potential replacement properties in writing. This 45-day deadline is strict. Missing it disqualifies your exchange.
  • Typically, you can identify up to 3 properties, regardless of value (Alternative rules exist for identifying more properties. If relevant, we'll explain these IRS rules in detail.)
  • If you're having trouble finding ideal replacement properties, we can use our extensive network and connections in commercial real estate to help.

1. Initiating the Purchase

  • When you've found your replacement property,  send us the purchase contract and your settlement agent's details.
  • We'll prepare the Assignment of Contract Rights, Notice of Assignment, and Exchange Fund Disbursement Authorization.
  • You'll sign an Assignment of Replacement Property Contract, putting the wheels in motion for a smooth transaction.

2. Coordinating the Close

  • As your closing date approaches, we'll coordinate with your settlement agent, providing clear instructions and our Exchange Funds Transmittal form.
  • Just before closing, you'll sign a Release Form, authorizing us to transfer funds. We'll then wire the money directly from our secure Qualified Trust Account to the closing agent.

3. Wrapping Up Your Exchange

  • You'll officially take ownership of your new property.
  • We'll provide you with a comprehensive Exchange Summary Statement, giving you a clear picture of the entire transaction.
  • For your tax records, you'll receive Form 8824 (Like-Kind Exchanges) information, ensuring you're fully prepared for tax season.

Industry experts, at your service

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