Forward 1031 Exchanges
A straightforward process, personally managed.
A forward 1031 exchange, also known as a delayed exchange, allows real estate investors to sell an investment property and acquire replacement property while potentially deferring capital gains taxes under Section 1031 of the Internal Revenue Code.
Accountable 1031 serves as your Qualified Intermediary, helping coordinate the exchange, safeguard the exchange proceeds in accordance with the agreed arrangements, and keep your transaction moving through each stage.
How a Forward 1031 Exchange Works
1. Establish the Exchange
Before closing on the sale of your property, Accountable 1031 prepares the necessary exchange documentation and coordinates with the parties involved in the transaction.
2. Sell Your Property
At closing, the net exchange proceeds are transferred to Accountable 1031 rather than being made available to you. This is an important part of maintaining the exchange structure.
3. Identify Replacement Property
You generally have 45 calendar days from the transfer of your relinquished property to identify potential replacement properties in writing, subject to IRS identification rules.
4. Purchase Replacement Property
You generally have 180 calendar days from the transfer of your relinquished property to acquire your replacement property, or until the due date of your tax return, including extensions, if earlier.
5. Complete Your Exchange
Accountable 1031 prepares the necessary exchange documentation and coordinates the transfer of exchange funds toward the acquisition and helps complete the exchange documentation.
Why Choose Accountable 1031?
A successful exchange requires more than paperwork. It requires coordination, attention to deadlines, and a Qualified Intermediary who is accessible when questions arise.
At Accountable 1031, you work with an experienced team that understands both routine and complicated exchanges. We emphasize personal service, responsive communication, careful handling of exchange funds, and a practical understanding of the transaction from beginning to end.
Have a Forward Exchange Coming Up?
Speak with Accountable 1031 before closing on your property. We can explain the process, discuss your transaction, and help you get started.