Frequently Asked Questions
Clear answers before the transaction accelerates.
These answers are educational only. Always confirm tax, legal, and investment decisions with your own professional advisors.
What is a 1031 exchange?
A 1031 exchange is a tax-deferral strategy that may allow an investor to sell qualifying real property and acquire qualifying replacement real property while deferring certain gain recognition, subject to applicable rules.
When should I contact a qualified intermediary?
Before the relinquished property closes. The exchange must be structured in advance so the closing, assignment, and exchange proceeds are handled correctly.
What are the 45-day and 180-day deadlines?
In many delayed exchanges, replacement property identification is due within 45 days of the relinquished property transfer, and the replacement property acquisition is completed within 180 days, subject to applicable rules and tax return timing.
Can I buy the replacement property before selling?
Potentially. A reverse exchange may support that sequence, but it requires additional planning, documentation, and coordination before the acquisition occurs.
Can exchange funds be used for improvements?
Improvement exchanges may allow exchange value to be applied toward eligible construction or renovation work, but the structure must be planned carefully and timing matters.
Do you replace my CPA or attorney?
No. We coordinate the exchange process and documentation, while your CPA, attorney, and investment advisors provide tax, legal, and investment advice specific to your circumstances.
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