Sell Your Property. Plan Your Next Investment.
A forward 1031 exchange allows real estate investors to sell qualifying investment property and acquire replacement property while potentially deferring capital gains taxes. With proper planning and exchange coordination, investors can transition into their next real estate investment while keeping long-term objectives in focus.
A Straightforward Approach to Your Next Real Estate Investment
A forward exchange is one of the most common structures used in a 1031 exchange. The investor transfers the relinquished property first and acquires replacement property afterward, subject to the applicable exchange requirements.
This structure may provide an opportunity to reposition a portfolio, pursue a different property type, or move into another market while deferring eligible capital gains taxes.
A Qualified Intermediary facilitates the exchange and coordinates the required documentation and handling of exchange proceeds. Planning ahead is essential because the exchange must be established before the relinquished property’s sale closes.
01
Establish the Exchange
Engage a Qualified Intermediary and arrange the required exchange documentation before closing on your relinquished property.
02
Sell Your Property
Transfer the relinquished property and have the sale proceeds handled according to the exchange arrangement.
03
Identify Replacement Property
Identify potential replacement property in writing within 45 calendar days of transferring the relinquished property.
04
Complete the Acquisition
Acquire the replacement property within the applicable 180-day exchange period, subject to the tax return deadline rules.
