1031 Exchange Process

A Clear Framework From Sale to Replacement Property

A successful exchange begins before the relinquished property closes. Understanding the sequence helps investors and their advisors prepare for the critical documentation, deadlines, and transaction milestones.

Step 1: Plan

Discuss the transaction with your tax and legal advisors and contact Aspen Exchange before the relinquished property closes.

Step 2: Open the Exchange

Aspen Exchange establishes the Qualified Intermediary relationship and prepares the applicable documentation.

Step 3: Transfer the Relinquished Property

The sale proceeds are handled through the exchange structure rather than being received directly by the exchanger.

Step 4: Identify Replacement Property

Within the applicable 45-day period, replacement property is identified according to the applicable identification rules.

Step 5: Acquire Replacement Property

The replacement property is acquired within the applicable exchange period, generally 180 days after the relinquished-property transfer.

Step 6: Complete the Exchange

Aspen Exchange completes the exchange administration and provides the transaction documentation needed by the exchanger and tax professional.

Important

Deadlines and qualification requirements are strict. Tax and legal treatment should be confirmed with the appropriate professional advisors.